Correlation Between Loomis Sayles and Invesco KBW

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

By analyzing existing cross correlation between Loomis Sayles Global and Invesco KBW High, you can compare the effects of market volatilities on Loomis Sayles and Invesco KBW 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 Invesco KBW. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Invesco KBW.

Diversification Opportunities for Loomis Sayles and Invesco KBW

0.23

Correlation Coefficient

Loomis Sayles  Invesco KBW

Modest diversification

The 3 months correlation between Loomis and Invesco is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Global and Invesco KBW High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco KBW High 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 Global are associated (or correlated) with Invesco KBW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco KBW High has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Invesco KBW go up and down completely randomly.

Pair Corralation between Loomis Sayles and Invesco KBW

Assuming the 90 days horizon Loomis Sayles Global is expected to generate 0.64 times more return on investment than Invesco KBW. However, Loomis Sayles Global is 1.57 times less risky than Invesco KBW. It trades about 0.05 of its potential returns per unit of risk. Invesco KBW High is currently generating about 0.02 per unit of risk. If you would invest  2,700  in Loomis Sayles Global on September 11, 2025 and sell it today you would earn a total of  48.00  from holding Loomis Sayles Global or generate 1.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Loomis Sayles Global  vs.  Invesco KBW High

Loomis Sayles Global

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Loomis Sayles Global are ranked lower than 4 (%) 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.

Invesco KBW High

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Invesco KBW High are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Invesco KBW is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Loomis Sayles and Invesco KBW

The main advantage of trading using opposite Loomis Sayles and Invesco KBW positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Invesco KBW 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 Invesco KBW will offset losses from the drop in Invesco KBW's long position.

The idea behind Loomis Sayles Global and Invesco KBW High 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.