Correlation Between Loomis Sayles and Inflation Protected
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Inflation Protected 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 Loomis Sayles and Inflation Protected into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Loomis Sayles Inflation and Inflation Protected Bond Fund, you can compare the effects of market volatilities on Loomis Sayles and Inflation Protected 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 Loomis Sayles with a short position of Inflation Protected. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Inflation Protected.
Diversification Opportunities for Loomis Sayles and Inflation Protected
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Loomis and Inflation is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Inflation and Inflation Protected Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inflation Protected and Loomis Sayles 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 Loomis Sayles Inflation are associated (or correlated) with Inflation Protected. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inflation Protected has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Inflation Protected go up and down completely randomly.
Pair Corralation between Loomis Sayles and Inflation Protected
Assuming the 90 days horizon Loomis Sayles is expected to generate 2.16 times less return on investment than Inflation Protected. But when comparing it to its historical volatility, Loomis Sayles Inflation is 2.53 times less risky than Inflation Protected. It trades about 0.08 of its potential returns per unit of risk. Inflation Protected Bond Fund is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,064 in Inflation Protected Bond Fund on August 22, 2025 and sell it today you would earn a total of 21.00 from holding Inflation Protected Bond Fund or generate 1.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loomis Sayles Inflation vs. Inflation Protected Bond Fund
Performance |
| Timeline |
| Loomis Sayles Inflation |
| Inflation Protected |
Loomis Sayles and Inflation Protected Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Inflation Protected
The main advantage of trading using opposite Loomis Sayles and Inflation Protected positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Inflation Protected 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 Inflation Protected will offset losses from the drop in Inflation Protected's long position.| Loomis Sayles vs. Growth Opportunities Fund | Loomis Sayles vs. Tfa Alphagen Growth | Loomis Sayles vs. Slow Capital Growth | Loomis Sayles vs. Chase Growth Fund |
| Inflation Protected vs. Fidelity Advisor Energy | Inflation Protected vs. Vanguard Energy Index | Inflation Protected vs. Ivy Natural Resources | Inflation Protected vs. Hennessy Bp Energy |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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