Correlation Between Blackrock Inflation and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Blackrock Inflation 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 Blackrock Inflation and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Inflation Protected and Loomis Sayles Inflation, you can compare the effects of market volatilities on Blackrock Inflation 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 Blackrock Inflation with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Inflation and Loomis Sayles.
Diversification Opportunities for Blackrock Inflation and Loomis Sayles
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Blackrock and Loomis is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Inflation Protected 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 Blackrock Inflation 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 Blackrock Inflation Protected 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 Blackrock Inflation i.e., Blackrock Inflation and Loomis Sayles go up and down completely randomly.
Pair Corralation between Blackrock Inflation and Loomis Sayles
Assuming the 90 days horizon Blackrock Inflation is expected to generate 1.55 times less return on investment than Loomis Sayles. In addition to that, Blackrock Inflation is 1.01 times more volatile than Loomis Sayles Inflation. It trades about 0.08 of its total potential returns per unit of risk. Loomis Sayles Inflation is currently generating about 0.12 per unit of volatility. If you would invest 967.00 in Loomis Sayles Inflation on August 30, 2025 and sell it today you would earn a total of 14.00 from holding Loomis Sayles Inflation or generate 1.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.44% |
| Values | Daily Returns |
Blackrock Inflation Protected vs. Loomis Sayles Inflation
Performance |
| Timeline |
| Blackrock Inflation |
| Loomis Sayles Inflation |
Blackrock Inflation and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Inflation and Loomis Sayles
The main advantage of trading using opposite Blackrock Inflation and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Inflation 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.| Blackrock Inflation vs. Blackrock California Municipal | Blackrock Inflation vs. Blackrock Balanced Capital | Blackrock Inflation vs. Mkeax | Blackrock Inflation vs. Blackrock Eurofund Class |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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