Correlation Between Pimco Commodityrealret and Catalyst Hedged
Can any of the company-specific risk be diversified away by investing in both Pimco Commodityrealret and Catalyst Hedged 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 Commodityrealret and Catalyst Hedged into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Commodityrealreturn Strategy and Catalyst Hedged Modity, you can compare the effects of market volatilities on Pimco Commodityrealret and Catalyst Hedged 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 Commodityrealret with a short position of Catalyst Hedged. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Commodityrealret and Catalyst Hedged.
Diversification Opportunities for Pimco Commodityrealret and Catalyst Hedged
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Pimco and Catalyst is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Commodityrealreturn Stra and Catalyst Hedged Modity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst Hedged Modity and Pimco Commodityrealret 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 Commodityrealreturn Strategy are associated (or correlated) with Catalyst Hedged. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst Hedged Modity has no effect on the direction of Pimco Commodityrealret i.e., Pimco Commodityrealret and Catalyst Hedged go up and down completely randomly.
Pair Corralation between Pimco Commodityrealret and Catalyst Hedged
Assuming the 90 days horizon Pimco Commodityrealreturn Strategy is expected to under-perform the Catalyst Hedged. In addition to that, Pimco Commodityrealret is 1.02 times more volatile than Catalyst Hedged Modity. It trades about -0.01 of its total potential returns per unit of risk. Catalyst Hedged Modity is currently generating about 0.09 per unit of volatility. If you would invest 898.00 in Catalyst Hedged Modity on September 1, 2024 and sell it today you would earn a total of 14.00 from holding Catalyst Hedged Modity or generate 1.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Pimco Commodityrealreturn Stra vs. Catalyst Hedged Modity
Performance |
| Timeline |
| Pimco Commodityrealret |
| Catalyst Hedged Modity |
Pimco Commodityrealret and Catalyst Hedged Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Commodityrealret and Catalyst Hedged
The main advantage of trading using opposite Pimco Commodityrealret and Catalyst Hedged positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Commodityrealret position performs unexpectedly, Catalyst Hedged 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 Catalyst Hedged will offset losses from the drop in Catalyst Hedged's long position.| Pimco Commodityrealret vs. Davenport Small Cap | Pimco Commodityrealret vs. Jhancock Diversified Macro | Pimco Commodityrealret vs. The Gabelli Small | Pimco Commodityrealret vs. Aqr Diversified Arbitrage |
| Catalyst Hedged vs. Aqr Diversified Arbitrage | Catalyst Hedged vs. Jhancock Diversified Macro | Catalyst Hedged vs. Tax Managed Mid Small | Catalyst Hedged vs. Delaware Limited Term Diversified |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Global Correlations Find global opportunities by holding instruments from different markets |