Correlation Between Loomis Sayles and Rationalrgn Hedged
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Rationalrgn Hedged 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 Rationalrgn Hedged 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 Rationalrgn Hedged Equity, you can compare the effects of market volatilities on Loomis Sayles and Rationalrgn Hedged 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 Rationalrgn Hedged. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Rationalrgn Hedged.
Diversification Opportunities for Loomis Sayles and Rationalrgn Hedged
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Loomis and Rationalrgn is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Inflation and Rationalrgn Hedged Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rationalrgn Hedged Equity 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 Rationalrgn Hedged. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rationalrgn Hedged Equity has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Rationalrgn Hedged go up and down completely randomly.
Pair Corralation between Loomis Sayles and Rationalrgn Hedged
Assuming the 90 days horizon Loomis Sayles is expected to generate 2.4 times less return on investment than Rationalrgn Hedged. But when comparing it to its historical volatility, Loomis Sayles Inflation is 4.95 times less risky than Rationalrgn Hedged. It trades about 0.23 of its potential returns per unit of risk. Rationalrgn Hedged Equity is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,067 in Rationalrgn Hedged Equity on July 27, 2025 and sell it today you would earn a total of 76.00 from holding Rationalrgn Hedged Equity or generate 7.12% 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. Rationalrgn Hedged Equity
Performance |
| Timeline |
| Loomis Sayles Inflation |
| Rationalrgn Hedged Equity |
Loomis Sayles and Rationalrgn Hedged Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Rationalrgn Hedged
The main advantage of trading using opposite Loomis Sayles and Rationalrgn Hedged positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Rationalrgn Hedged 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 Rationalrgn Hedged will offset losses from the drop in Rationalrgn Hedged's long position.| Loomis Sayles vs. Oklahoma College Savings | Loomis Sayles vs. The Hartford Total | Loomis Sayles vs. Pimco Unconstrained Bond | Loomis Sayles vs. Ms Global Fixed |
| Rationalrgn Hedged vs. Ab High Income | Rationalrgn Hedged vs. T Rowe Price | Rationalrgn Hedged vs. Artisan High Income | Rationalrgn Hedged vs. John Hancock High |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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