Correlation Between Astor Long/short and Pimco Real
Can any of the company-specific risk be diversified away by investing in both Astor Long/short and Pimco Real 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 Astor Long/short and Pimco Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astor Longshort Fund and Pimco Real Return, you can compare the effects of market volatilities on Astor Long/short and Pimco Real 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 Astor Long/short with a short position of Pimco Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Long/short and Pimco Real.
Diversification Opportunities for Astor Long/short and Pimco Real
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Astor and PIMCO is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Pimco Real Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Real Return and Astor Long/short 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 Astor Longshort Fund are associated (or correlated) with Pimco Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Real Return has no effect on the direction of Astor Long/short i.e., Astor Long/short and Pimco Real go up and down completely randomly.
Pair Corralation between Astor Long/short and Pimco Real
Assuming the 90 days horizon Astor Longshort Fund is expected to generate 1.29 times more return on investment than Pimco Real. However, Astor Long/short is 1.29 times more volatile than Pimco Real Return. It trades about 0.46 of its potential returns per unit of risk. Pimco Real Return is currently generating about 0.15 per unit of risk. If you would invest 1,380 in Astor Longshort Fund on September 5, 2024 and sell it today you would earn a total of 50.00 from holding Astor Longshort Fund or generate 3.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astor Longshort Fund vs. Pimco Real Return
Performance |
| Timeline |
| Astor Long/short |
| Pimco Real Return |
Astor Long/short and Pimco Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Long/short and Pimco Real
The main advantage of trading using opposite Astor Long/short and Pimco Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Long/short position performs unexpectedly, Pimco Real 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 Real will offset losses from the drop in Pimco Real's long position.| Astor Long/short vs. Ab Government Exchange | Astor Long/short vs. Edward Jones Money | Astor Long/short vs. Hsbc Treasury Money | Astor Long/short vs. American Century Municipal |
| Pimco Real vs. Abr 7525 Volatility | Pimco Real vs. Arrow Managed Futures | Pimco Real vs. Fa 529 Aggressive | Pimco Real vs. Falcon Focus Scv |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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