Correlation Between Dynex Capital and Pimco Realestaterealre
Can any of the company-specific risk be diversified away by investing in both Dynex Capital and Pimco Realestaterealre 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 Dynex Capital and Pimco Realestaterealre into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dynex Capital and Pimco Realestaterealreturn Strategy, you can compare the effects of market volatilities on Dynex Capital and Pimco Realestaterealre 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 Dynex Capital with a short position of Pimco Realestaterealre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dynex Capital and Pimco Realestaterealre.
Diversification Opportunities for Dynex Capital and Pimco Realestaterealre
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dynex and Pimco is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Dynex Capital and Pimco Realestaterealreturn Str in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Realestaterealre and Dynex Capital 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 Dynex Capital are associated (or correlated) with Pimco Realestaterealre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Realestaterealre has no effect on the direction of Dynex Capital i.e., Dynex Capital and Pimco Realestaterealre go up and down completely randomly.
Pair Corralation between Dynex Capital and Pimco Realestaterealre
Allowing for the 90-day total investment horizon Dynex Capital is expected to generate 1.15 times less return on investment than Pimco Realestaterealre. But when comparing it to its historical volatility, Dynex Capital is 1.04 times less risky than Pimco Realestaterealre. It trades about 0.23 of its potential returns per unit of risk. Pimco Realestaterealreturn Strategy is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 2,610 in Pimco Realestaterealreturn Strategy on September 1, 2024 and sell it today you would earn a total of 129.00 from holding Pimco Realestaterealreturn Strategy or generate 4.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Dynex Capital vs. Pimco Realestaterealreturn Str
Performance |
| Timeline |
| Dynex Capital |
| Pimco Realestaterealre |
Dynex Capital and Pimco Realestaterealre Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dynex Capital and Pimco Realestaterealre
The main advantage of trading using opposite Dynex Capital and Pimco Realestaterealre positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dynex Capital position performs unexpectedly, Pimco Realestaterealre 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 Realestaterealre will offset losses from the drop in Pimco Realestaterealre's long position.| Dynex Capital vs. Ellington Residential Mortgage | Dynex Capital vs. Orchid Island Capital | Dynex Capital vs. ARMOUR Residential REIT | Dynex Capital vs. Ellington Financial |
| Pimco Realestaterealre vs. Realty Income | Pimco Realestaterealre vs. Dynex Capital | Pimco Realestaterealre vs. First Industrial Realty | Pimco Realestaterealre vs. Healthcare Realty Trust |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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