Correlation Between Loomis Sayles and Massmutual Retiresmart
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Massmutual Retiresmart 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 Massmutual Retiresmart 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 Massmutual Retiresmart Moderate, you can compare the effects of market volatilities on Loomis Sayles and Massmutual Retiresmart 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 Massmutual Retiresmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Massmutual Retiresmart.
Diversification Opportunities for Loomis Sayles and Massmutual Retiresmart
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Loomis and Massmutual is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Inflation and Massmutual Retiresmart Moderat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Retiresmart 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 Massmutual Retiresmart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massmutual Retiresmart has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Massmutual Retiresmart go up and down completely randomly.
Pair Corralation between Loomis Sayles and Massmutual Retiresmart
Assuming the 90 days horizon Loomis Sayles Inflation is expected to generate 0.26 times more return on investment than Massmutual Retiresmart. However, Loomis Sayles Inflation is 3.9 times less risky than Massmutual Retiresmart. It trades about -0.22 of its potential returns per unit of risk. Massmutual Retiresmart Moderate is currently generating about -0.1 per unit of risk. If you would invest 982.00 in Loomis Sayles Inflation on September 25, 2024 and sell it today you would lose (38.00) from holding Loomis Sayles Inflation or give up 3.87% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Loomis Sayles Inflation vs. Massmutual Retiresmart Moderat
Performance |
Timeline |
Loomis Sayles Inflation |
Massmutual Retiresmart |
Loomis Sayles and Massmutual Retiresmart Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Loomis Sayles and Massmutual Retiresmart
The main advantage of trading using opposite Loomis Sayles and Massmutual Retiresmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Massmutual Retiresmart 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 Massmutual Retiresmart will offset losses from the drop in Massmutual Retiresmart's long position.Loomis Sayles vs. Western Asset Inflation | Loomis Sayles vs. Altegris Futures Evolution | Loomis Sayles vs. American Funds Inflation | Loomis Sayles vs. Fidelity Sai Inflationfocused |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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