Correlation Between Stocksplus and Pimco All
Can any of the company-specific risk be diversified away by investing in both Stocksplus and Pimco All 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 Stocksplus and Pimco All into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stocksplus Tr Short and Pimco All Asset, you can compare the effects of market volatilities on Stocksplus and Pimco All 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 Stocksplus with a short position of Pimco All. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stocksplus and Pimco All.
Diversification Opportunities for Stocksplus and Pimco All
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Stocksplus and Pimco is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Stocksplus Tr Short and Pimco All Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco All Asset and Stocksplus 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 Stocksplus Tr Short are associated (or correlated) with Pimco All. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco All Asset has no effect on the direction of Stocksplus i.e., Stocksplus and Pimco All go up and down completely randomly.
Pair Corralation between Stocksplus and Pimco All
Assuming the 90 days horizon Stocksplus Tr Short is expected to under-perform the Pimco All. In addition to that, Stocksplus is 1.92 times more volatile than Pimco All Asset. It trades about -0.02 of its total potential returns per unit of risk. Pimco All Asset is currently generating about 0.07 per unit of volatility. If you would invest 1,086 in Pimco All Asset on February 9, 2024 and sell it today you would earn a total of 18.00 from holding Pimco All Asset or generate 1.66% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Stocksplus Tr Short vs. Pimco All Asset
Performance |
Timeline |
Stocksplus Tr Short |
Pimco All Asset |
Stocksplus and Pimco All Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Stocksplus and Pimco All
The main advantage of trading using opposite Stocksplus and Pimco All positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stocksplus position performs unexpectedly, Pimco All 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 Pimco All will offset losses from the drop in Pimco All's long position.Stocksplus vs. Federated Prudent Bear | Stocksplus vs. Federated Prudent Bear | Stocksplus vs. Federated Prudent Bear | Stocksplus vs. Pimco Stocksplus Ar |
Pimco All vs. All Asset Fund | Pimco All vs. Pimco All Asset | Pimco All vs. All Asset Fund | Pimco All vs. All Asset Fund |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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