Correlation Between Short Duration and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Short Duration 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 Short Duration and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Short Duration Inflation and Loomis Sayles Investment, you can compare the effects of market volatilities on Short Duration 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 Short Duration with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Short Duration and Loomis Sayles.
Diversification Opportunities for Short Duration and Loomis Sayles
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Short and LOOMIS is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Short Duration Inflation and Loomis Sayles Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Investment and Short Duration 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 Short Duration Inflation 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 Investment has no effect on the direction of Short Duration i.e., Short Duration and Loomis Sayles go up and down completely randomly.
Pair Corralation between Short Duration and Loomis Sayles
Assuming the 90 days horizon Short Duration is expected to generate 1.21 times less return on investment than Loomis Sayles. But when comparing it to its historical volatility, Short Duration Inflation is 1.77 times less risky than Loomis Sayles. It trades about 0.34 of its potential returns per unit of risk. Loomis Sayles Investment is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 961.00 in Loomis Sayles Investment on June 7, 2025 and sell it today you would earn a total of 30.00 from holding Loomis Sayles Investment or generate 3.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Short Duration Inflation vs. Loomis Sayles Investment
Performance |
| Timeline |
| Short Duration Inflation |
| Loomis Sayles Investment |
Short Duration and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Short Duration and Loomis Sayles
The main advantage of trading using opposite Short Duration and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Short Duration 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.| Short Duration vs. Northern Small Cap | Short Duration vs. Vanguard Small Cap Value | Short Duration vs. Mutual Of America | Short Duration vs. Fidelity Small Cap |
| Loomis Sayles vs. Fidelity Money Market | Loomis Sayles vs. Rbc Money Market | Loomis Sayles vs. Profunds Money | Loomis Sayles vs. Aig Government Money |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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