Correlation Between Visa and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Visa 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 Visa and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Visa Class A and Loomis Sayles Global, you can compare the effects of market volatilities on Visa 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 Visa with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Loomis Sayles.
Diversification Opportunities for Visa and Loomis Sayles
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Visa and Loomis is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Loomis Sayles Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Global and Visa 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 Visa Class A 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 Global has no effect on the direction of Visa i.e., Visa and Loomis Sayles go up and down completely randomly.
Pair Corralation between Visa and Loomis Sayles
Taking into account the 90-day investment horizon Visa Class A is expected to generate 1.48 times more return on investment than Loomis Sayles. However, Visa is 1.48 times more volatile than Loomis Sayles Global. It trades about 0.11 of its potential returns per unit of risk. Loomis Sayles Global is currently generating about -0.04 per unit of risk. If you would invest 32,037 in Visa Class A on December 26, 2024 and sell it today you would earn a total of 2,381 from holding Visa Class A or generate 7.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Visa Class A vs. Loomis Sayles Global
Performance |
Timeline |
Visa Class A |
Loomis Sayles Global |
Visa and Loomis Sayles Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Visa and Loomis Sayles
The main advantage of trading using opposite Visa and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa 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.Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
Loomis Sayles vs. Loomis Sayles Global | Loomis Sayles vs. Natixis Equity Opportunities | Loomis Sayles vs. Loomis Sayles Global | Loomis Sayles vs. Loomis Sayles Growth |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |