Correlation Between Astor Long/short and Pimco Rae
Can any of the company-specific risk be diversified away by investing in both Astor Long/short and Pimco Rae 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 Rae 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 Rae Worldwide, you can compare the effects of market volatilities on Astor Long/short and Pimco Rae 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 Rae. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Long/short and Pimco Rae.
Diversification Opportunities for Astor Long/short and Pimco Rae
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Astor and Pimco is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Pimco Rae Worldwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Rae Worldwide 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 Rae. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Rae Worldwide has no effect on the direction of Astor Long/short i.e., Astor Long/short and Pimco Rae go up and down completely randomly.
Pair Corralation between Astor Long/short and Pimco Rae
Assuming the 90 days horizon Astor Long/short is expected to generate 1.04 times less return on investment than Pimco Rae. But when comparing it to its historical volatility, Astor Longshort Fund is 1.23 times less risky than Pimco Rae. It trades about 0.14 of its potential returns per unit of risk. Pimco Rae Worldwide is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 685.00 in Pimco Rae Worldwide on August 31, 2024 and sell it today you would earn a total of 150.00 from holding Pimco Rae Worldwide or generate 21.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Astor Longshort Fund vs. Pimco Rae Worldwide
Performance |
| Timeline |
| Astor Long/short |
| Pimco Rae Worldwide |
Astor Long/short and Pimco Rae Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Long/short and Pimco Rae
The main advantage of trading using opposite Astor Long/short and Pimco Rae positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Long/short position performs unexpectedly, Pimco Rae 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 Rae will offset losses from the drop in Pimco Rae's long position.| Astor Long/short vs. Scharf Global Opportunity | Astor Long/short vs. Iaadx | Astor Long/short vs. Fa 529 Aggressive | Astor Long/short vs. Aam Select Income |
| Pimco Rae vs. The Gabelli Healthcare | Pimco Rae vs. Prudential Health Sciences | Pimco Rae vs. Highland Longshort Healthcare | Pimco Rae vs. Blackrock Health Sciences |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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