Correlation Between Loomis Sayles and Mid Cap
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Mid Cap 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 Mid Cap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Loomis Sayles Growth and Mid Cap Growth, you can compare the effects of market volatilities on Loomis Sayles and Mid Cap 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 Mid Cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Mid Cap.
Diversification Opportunities for Loomis Sayles and Mid Cap
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Loomis and Mid is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Growth and Mid Cap Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mid Cap Growth 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 Growth are associated (or correlated) with Mid Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mid Cap Growth has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Mid Cap go up and down completely randomly.
Pair Corralation between Loomis Sayles and Mid Cap
Assuming the 90 days horizon Loomis Sayles Growth is expected to generate 0.93 times more return on investment than Mid Cap. However, Loomis Sayles Growth is 1.07 times less risky than Mid Cap. It trades about 0.29 of its potential returns per unit of risk. Mid Cap Growth is currently generating about 0.25 per unit of risk. If you would invest 2,739 in Loomis Sayles Growth on May 1, 2025 and sell it today you would earn a total of 504.00 from holding Loomis Sayles Growth or generate 18.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loomis Sayles Growth vs. Mid Cap Growth
Performance |
| Timeline |
| Loomis Sayles Growth |
| Mid Cap Growth |
Loomis Sayles and Mid Cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Mid Cap
The main advantage of trading using opposite Loomis Sayles and Mid Cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Mid Cap 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 Mid Cap will offset losses from the drop in Mid Cap's long position.| Loomis Sayles vs. American Mutual Fund | Loomis Sayles vs. Metropolitan West Total | Loomis Sayles vs. John Hancock Disciplined | Loomis Sayles vs. Edgewood Growth Fund |
| Mid Cap vs. Touchstone Mid Cap | Mid Cap vs. Federated Mdt Small | Mid Cap vs. Harding Loevner International | Mid Cap vs. Sterling Capital Equity |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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