Correlation Between Nuveen Large and Loomis Sayles

Can any of the company-specific risk be diversified away by investing in both Nuveen Large 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 Nuveen Large and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Nuveen Large Cap and Loomis Sayles Investment, you can compare the effects of market volatilities on Nuveen Large 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 Nuveen Large with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Large and Loomis Sayles.

Diversification Opportunities for Nuveen Large and Loomis Sayles

0.82

Correlation Coefficient

Nuveen Large  Loomis Sayles

Very poor diversification

The 3 months correlation between Nuveen and Loomis is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Large Cap and Loomis Sayles Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Investment and Nuveen Large 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 Nuveen Large Cap 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 Investment has no effect on the direction of Nuveen Large i.e., Nuveen Large and Loomis Sayles go up and down completely randomly.

Pair Corralation between Nuveen Large and Loomis Sayles

Assuming the 90 days horizon Nuveen Large Cap is expected to generate 2.77 times more return on investment than Loomis Sayles. However, Nuveen Large is 2.77 times more volatile than Loomis Sayles Investment. It trades about 0.25 of its potential returns per unit of risk. Loomis Sayles Investment is currently generating about 0.15 per unit of risk. If you would invest  3,744  in Nuveen Large Cap on May 6, 2025 and sell it today you would earn a total of  473.00  from holding Nuveen Large Cap or generate 12.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.41%
Values	Daily Returns

Nuveen Large Cap  vs.  Loomis Sayles Investment

Nuveen Large Cap

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Nuveen Large Cap are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Nuveen Large may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Loomis Sayles Investment

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Loomis Sayles Investment are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Loomis Sayles is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Nuveen Large and Loomis Sayles

The main advantage of trading using opposite Nuveen Large and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Large 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 Nuveen Large Cap and Loomis Sayles Investment 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.

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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.