Correlation Between Counterpoint Tactical and Loomis Sayles

Can any of the company-specific risk be diversified away by investing in both Counterpoint Tactical and Loomis Sayles at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Counterpoint Tactical and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Counterpoint Tactical Municipal and Loomis Sayles Inflation, you can compare the effects of market volatilities on Counterpoint Tactical and Loomis Sayles and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Counterpoint Tactical with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Counterpoint Tactical and Loomis Sayles.

Diversification Opportunities for Counterpoint Tactical and Loomis Sayles

0.36

Correlation Coefficient

Counterpoint Tactical  Loomis Sayles

Weak diversification

The 3 months correlation between Counterpoint and Loomis is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Counterpoint Tactical Municipa and Loomis Sayles Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Inflation and Counterpoint Tactical is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Counterpoint Tactical Municipal are associated (or correlated) with Loomis Sayles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loomis Sayles Inflation has no effect on the direction of Counterpoint Tactical i.e., Counterpoint Tactical and Loomis Sayles go up and down completely randomly.

Pair Corralation between Counterpoint Tactical and Loomis Sayles

Assuming the 90 days horizon Counterpoint Tactical Municipal is expected to under-perform the Loomis Sayles. But the mutual fund apears to be less risky and, when comparing its historical volatility, Counterpoint Tactical Municipal is 1.08 times less risky than Loomis Sayles. The mutual fund trades about -0.09 of its potential returns per unit of risk. The Loomis Sayles Inflation is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  947.00  in Loomis Sayles Inflation on December 29, 2024 and sell it today you would earn a total of  25.00  from holding Loomis Sayles Inflation or generate 2.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Counterpoint Tactical Municipa  vs.  Loomis Sayles Inflation

Counterpoint Tactical

Risk-Adjusted Performance

Very Weak

Over the last 90 days Counterpoint Tactical Municipal has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Counterpoint Tactical is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Loomis Sayles Inflation

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Loomis Sayles Inflation are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Loomis Sayles is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Counterpoint Tactical and Loomis Sayles

The main advantage of trading using opposite Counterpoint Tactical and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Counterpoint Tactical position performs unexpectedly, Loomis Sayles can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Loomis Sayles will offset losses from the drop in Loomis Sayles' long position.

The idea behind Counterpoint Tactical Municipal and Loomis Sayles Inflation pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.