Correlation Between Pimco All and Dunham Dynamic
Can any of the company-specific risk be diversified away by investing in both Pimco All and Dunham Dynamic 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 Dunham Dynamic 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 Dunham Dynamic Macro, you can compare the effects of market volatilities on Pimco All and Dunham Dynamic 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 Dunham Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco All and Dunham Dynamic.
Diversification Opportunities for Pimco All and Dunham Dynamic
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pimco and Dunham is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Pimco All Asset and Dunham Dynamic Macro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Dynamic Macro 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 Dunham Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Dynamic Macro has no effect on the direction of Pimco All i.e., Pimco All and Dunham Dynamic go up and down completely randomly.
Pair Corralation between Pimco All and Dunham Dynamic
Assuming the 90 days horizon Pimco All is expected to generate 3.31 times less return on investment than Dunham Dynamic. But when comparing it to its historical volatility, Pimco All Asset is 1.4 times less risky than Dunham Dynamic. It trades about 0.03 of its potential returns per unit of risk. Dunham Dynamic Macro is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 983.00 in Dunham Dynamic Macro on October 9, 2024 and sell it today you would earn a total of 214.00 from holding Dunham Dynamic Macro or generate 21.77% 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. Dunham Dynamic Macro
Performance |
| Timeline |
| Pimco All Asset |
| Dunham Dynamic Macro |
Pimco All and Dunham Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco All and Dunham Dynamic
The main advantage of trading using opposite Pimco All and Dunham Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco All position performs unexpectedly, Dunham Dynamic 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 Dunham Dynamic will offset losses from the drop in Dunham Dynamic's long position.| Pimco All vs. Rmb Mendon Financial | Pimco All vs. Fidelity Advisor Financial | Pimco All vs. Gabelli Global Financial | Pimco All vs. 1919 Financial Services |
| Dunham Dynamic vs. Fidelity Sai Inflationfocused | Dunham Dynamic vs. Massmutual Premier Inflation Protected | Dunham Dynamic vs. Altegris Futures Evolution | Dunham Dynamic vs. Cref Inflation Linked Bond |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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