Correlation Between Scout Small and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Scout Small 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 Scout Small and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scout Small Cap and Loomis Sayles Inflation, you can compare the effects of market volatilities on Scout Small 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 Scout Small with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scout Small and Loomis Sayles.
Diversification Opportunities for Scout Small and Loomis Sayles
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Scout and Loomis is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Scout Small Cap 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 Scout Small 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 Scout Small Cap 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 Scout Small i.e., Scout Small and Loomis Sayles go up and down completely randomly.
Pair Corralation between Scout Small and Loomis Sayles
Assuming the 90 days horizon Scout Small Cap is expected to under-perform the Loomis Sayles. In addition to that, Scout Small is 7.52 times more volatile than Loomis Sayles Inflation. It trades about -0.18 of its total potential returns per unit of risk. Loomis Sayles Inflation is currently generating about 0.11 per unit of volatility. If you would invest 962.00 in Loomis Sayles Inflation on December 3, 2024 and sell it today you would earn a total of 16.00 from holding Loomis Sayles Inflation or generate 1.66% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Scout Small Cap vs. Loomis Sayles Inflation
Performance |
Timeline |
Scout Small Cap |
Loomis Sayles Inflation |
Scout Small and Loomis Sayles Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Scout Small and Loomis Sayles
The main advantage of trading using opposite Scout Small and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scout Small 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.Scout Small vs. Oklahoma College Savings | Scout Small vs. Eip Growth And | Scout Small vs. Ab Centrated International | Scout Small vs. The Hartford International |
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Check out your portfolio center.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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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