Correlation Between Pimco All and Astor Star
Can any of the company-specific risk be diversified away by investing in both Pimco All and Astor Star 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 Astor Star 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 Astor Star Fund, you can compare the effects of market volatilities on Pimco All and Astor Star 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 Astor Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco All and Astor Star.
Diversification Opportunities for Pimco All and Astor Star
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pimco and Astor is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Pimco All Asset and Astor Star Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Star 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 Astor Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astor Star Fund has no effect on the direction of Pimco All i.e., Pimco All and Astor Star go up and down completely randomly.
Pair Corralation between Pimco All and Astor Star
Assuming the 90 days horizon Pimco All is expected to generate 4.39 times less return on investment than Astor Star. But when comparing it to its historical volatility, Pimco All Asset is 1.38 times less risky than Astor Star. It trades about 0.05 of its potential returns per unit of risk. Astor Star Fund is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,380 in Astor Star Fund on August 28, 2024 and sell it today you would earn a total of 262.00 from holding Astor Star Fund or generate 18.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco All Asset vs. Astor Star Fund
Performance |
| Timeline |
| Pimco All Asset |
| Astor Star Fund |
Pimco All and Astor Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco All and Astor Star
The main advantage of trading using opposite Pimco All and Astor Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco All position performs unexpectedly, Astor Star 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 Astor Star will offset losses from the drop in Astor Star'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 |
| Astor Star vs. Astor Longshort Fund | Astor Star vs. Astor Longshort Fund | Astor Star vs. Fidelity Balanced Fund | Astor Star vs. Thrivent Moderate Allocation |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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