Correlation Between Floating Rate and Pacific Funds
Can any of the company-specific risk be diversified away by investing in both Floating Rate and Pacific Funds 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 Floating Rate and Pacific Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Floating Rate Fund and Pacific Funds Smallmid Cap, you can compare the effects of market volatilities on Floating Rate and Pacific Funds 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 Floating Rate with a short position of Pacific Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Floating Rate and Pacific Funds.
Diversification Opportunities for Floating Rate and Pacific Funds
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Floating and Pacific is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Floating Rate Fund and Pacific Funds Smallmid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pacific Funds Smallmid and Floating Rate 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 Floating Rate Fund are associated (or correlated) with Pacific Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pacific Funds Smallmid has no effect on the direction of Floating Rate i.e., Floating Rate and Pacific Funds go up and down completely randomly.
Pair Corralation between Floating Rate and Pacific Funds
If you would invest 813.00 in Floating Rate Fund on October 20, 2024 and sell it today you would earn a total of 6.00 from holding Floating Rate Fund or generate 0.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Floating Rate Fund vs. Pacific Funds Smallmid Cap
Performance |
| Timeline |
| Floating Rate |
| Pacific Funds Smallmid |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Floating Rate and Pacific Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Floating Rate and Pacific Funds
The main advantage of trading using opposite Floating Rate and Pacific Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Floating Rate position performs unexpectedly, Pacific Funds 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 Pacific Funds will offset losses from the drop in Pacific Funds' long position.| Floating Rate vs. Heartland Value Plus | Floating Rate vs. Victory Rs Partners | Floating Rate vs. Vanguard Small Cap Value | Floating Rate vs. Fidelity Small Cap |
| Pacific Funds vs. Gmo High Yield | Pacific Funds vs. Ambrus Core Bond | Pacific Funds vs. Siit High Yield | Pacific Funds vs. Dreyfusstandish Global Fixed |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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