PIMCO RAFI Correlations

MFUS Etf  USD 50.85  0.25  0.49%   
The current 90-days correlation between PIMCO RAFI Dynamic and PIMCO RAFI Dynamic is 0.56 (i.e., Very weak diversification). The correlation of PIMCO RAFI is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

PIMCO RAFI Correlation With Market

Very weak diversification

The correlation between PIMCO RAFI Dynamic and DJI is 0.43 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding PIMCO RAFI Dynamic and DJI in the same portfolio, assuming nothing else is changed.
  
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in PIMCO RAFI Dynamic. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in employment.

Moving together with PIMCO Etf

  0.93VTV Vanguard Value IndexPairCorr
  0.96VYM Vanguard High DividendPairCorr
  0.95IWD iShares Russell 1000PairCorr
  0.96DGRO iShares Core DividendPairCorr
  0.92IVE iShares SP 500PairCorr
  0.91DVY iShares Select DividendPairCorr
  0.92SPYV SPDR Portfolio SPPairCorr
  0.88FVD First Trust ValuePairCorr
  0.93IUSV iShares Core SPPairCorr
  0.79NOBL ProShares SP 500PairCorr
  0.73PMBS PIMCO Mortgage BackedPairCorr
  0.66SIXD AIM ETF ProductsPairCorr
  0.84CEFD ETRACS Monthly PayPairCorr
  0.62IYG iShares FinancialPairCorr

Moving against PIMCO Etf

  0.39BNO United States BrentPairCorr
  0.39GSG iShares SP GSCIPairCorr

Related Correlations Analysis

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PIMCO RAFI Constituents Risk-Adjusted Indicators

There is a big difference between PIMCO Etf performing well and PIMCO RAFI ETF doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze PIMCO RAFI's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.