Correlation Between Pimco All and Muirfield Fund
Can any of the company-specific risk be diversified away by investing in both Pimco All and Muirfield Fund 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 Pimco All and Muirfield Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco All Asset and Muirfield Fund Retail, you can compare the effects of market volatilities on Pimco All and Muirfield Fund 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 Pimco All with a short position of Muirfield Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco All and Muirfield Fund.
Diversification Opportunities for Pimco All and Muirfield Fund
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pimco and Muirfield is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Pimco All Asset and Muirfield Fund Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Muirfield Fund Retail and Pimco All 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 Pimco All Asset are associated (or correlated) with Muirfield Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Muirfield Fund Retail has no effect on the direction of Pimco All i.e., Pimco All and Muirfield Fund go up and down completely randomly.
Pair Corralation between Pimco All and Muirfield Fund
Assuming the 90 days horizon Pimco All is expected to generate 1.42 times less return on investment than Muirfield Fund. But when comparing it to its historical volatility, Pimco All Asset is 2.52 times less risky than Muirfield Fund. It trades about 0.23 of its potential returns per unit of risk. Muirfield Fund Retail is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 929.00 in Muirfield Fund Retail on October 24, 2024 and sell it today you would earn a total of 19.00 from holding Muirfield Fund Retail or generate 2.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco All Asset vs. Muirfield Fund Retail
Performance |
| Timeline |
| Pimco All Asset |
| Muirfield Fund Retail |
Pimco All and Muirfield Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco All and Muirfield Fund
The main advantage of trading using opposite Pimco All and Muirfield Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco All position performs unexpectedly, Muirfield Fund 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 Muirfield Fund will offset losses from the drop in Muirfield Fund's long position.| Pimco All vs. Environment And Alternative | Pimco All vs. Pimco Energy Tactical | Pimco All vs. Salient Mlp Energy | Pimco All vs. Transamerica Mlp Energy |
| Muirfield Fund vs. Quantex Fund Retail | Muirfield Fund vs. Infrastructure Fund Retail | Muirfield Fund vs. Dynamic Growth Fund | Muirfield Fund vs. Balanced Fund Retail |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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