Correlation Between Pimco All and All Asset
Can any of the company-specific risk be diversified away by investing in both Pimco All and All Asset 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 All Asset 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 All Asset Fund, you can compare the effects of market volatilities on Pimco All and All Asset 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 All Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco All and All Asset.
Diversification Opportunities for Pimco All and All Asset
No risk reduction
The 3 months correlation between PIMCO and All is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Pimco All Asset and All Asset Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on All Asset Fund 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 All Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of All Asset Fund has no effect on the direction of Pimco All i.e., Pimco All and All Asset go up and down completely randomly.
Pair Corralation between Pimco All and All Asset
Assuming the 90 days horizon Pimco All is expected to generate 1.1 times less return on investment than All Asset. But when comparing it to its historical volatility, Pimco All Asset is 1.01 times less risky than All Asset. It trades about 0.04 of its potential returns per unit of risk. All Asset Fund is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,123 in All Asset Fund on September 2, 2024 and sell it today you would earn a total of 10.00 from holding All Asset Fund or generate 0.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco All Asset vs. All Asset Fund
Performance |
| Timeline |
| Pimco All Asset |
| All Asset Fund |
Pimco All and All Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco All and All Asset
The main advantage of trading using opposite Pimco All and All Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco All position performs unexpectedly, All Asset 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 All Asset will offset losses from the drop in All Asset's long position.| Pimco All vs. Pimco Rae Worldwide | Pimco All vs. Pimco Rae Worldwide | Pimco All vs. Pimco Rae Worldwide | Pimco All vs. Pimco Rae Worldwide |
| All Asset vs. Aam Select Income | All Asset vs. Leggmason Partners Institutional | All Asset vs. Arrow Managed Futures | All Asset vs. Western Asset Municipal |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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