Correlation Between Pcm Fund and CBH
Can any of the company-specific risk be diversified away by investing in both Pcm Fund and CBH 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 Pcm Fund and CBH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pcm Fund and CBH, you can compare the effects of market volatilities on Pcm Fund and CBH 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 Pcm Fund with a short position of CBH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pcm Fund and CBH.
Diversification Opportunities for Pcm Fund and CBH
Almost no diversification
The 3 months correlation between Pcm and CBH is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Pcm Fund and CBH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBH and Pcm Fund 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 Pcm Fund are associated (or correlated) with CBH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBH has no effect on the direction of Pcm Fund i.e., Pcm Fund and CBH go up and down completely randomly.
Pair Corralation between Pcm Fund and CBH
If you would invest 799.00 in Pcm Fund on August 31, 2024 and sell it today you would earn a total of 3.00 from holding Pcm Fund or generate 0.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 4.55% |
| Values | Daily Returns |
Pcm Fund vs. CBH
Performance |
| Timeline |
| Pcm Fund |
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Pcm Fund and CBH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pcm Fund and CBH
The main advantage of trading using opposite Pcm Fund and CBH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pcm Fund position performs unexpectedly, CBH 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 CBH will offset losses from the drop in CBH's long position.| Pcm Fund vs. Pimco High Income | Pcm Fund vs. Pimco Income Strategy | Pcm Fund vs. Pimco Corporate Income | Pcm Fund vs. PIMCO Access Income |
| CBH vs. Eaton Vance National | CBH vs. Invesco High Income | CBH vs. Blackrock Muniholdings Ny | CBH vs. Nuveen California Select |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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