Correlation Between Aqr Managed and Loomis Sayles

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Can any of the company-specific risk be diversified away by investing in both Aqr Managed 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 Aqr Managed and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Managed Futures and Loomis Sayles Inflation, you can compare the effects of market volatilities on Aqr Managed 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 Aqr Managed with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Loomis Sayles.

Diversification Opportunities for Aqr Managed and Loomis Sayles

0.21
  Correlation Coefficient

Modest diversification

The 3 months correlation between Aqr and Loomis is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures 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 Aqr Managed 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 Aqr Managed Futures 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 Aqr Managed i.e., Aqr Managed and Loomis Sayles go up and down completely randomly.

Pair Corralation between Aqr Managed and Loomis Sayles

Assuming the 90 days horizon Aqr Managed Futures is expected to generate 4.56 times more return on investment than Loomis Sayles. However, Aqr Managed is 4.56 times more volatile than Loomis Sayles Inflation. It trades about 0.13 of its potential returns per unit of risk. Loomis Sayles Inflation is currently generating about 0.12 per unit of risk. If you would invest  905.00  in Aqr Managed Futures on August 31, 2025 and sell it today you would earn a total of  64.00  from holding Aqr Managed Futures or generate 7.07% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Aqr Managed Futures  vs.  Loomis Sayles Inflation

 Performance 
       Timeline  
Aqr Managed Futures 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Aqr Managed Futures are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Aqr Managed may actually be approaching a critical reversion point that can send shares even higher in December 2025.
Loomis Sayles Inflation 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Loomis Sayles Inflation are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Loomis Sayles is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Aqr Managed and Loomis Sayles Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Aqr Managed and Loomis Sayles

The main advantage of trading using opposite Aqr Managed and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed 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.
The idea behind Aqr Managed Futures and Loomis Sayles Inflation pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

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