Correlation Between Pimco Global and Westwood Largecap
Can any of the company-specific risk be diversified away by investing in both Pimco Global and Westwood Largecap 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 Global and Westwood Largecap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Global Multi Asset and Westwood Largecap Value, you can compare the effects of market volatilities on Pimco Global and Westwood Largecap 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 Global with a short position of Westwood Largecap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Global and Westwood Largecap.
Diversification Opportunities for Pimco Global and Westwood Largecap
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Pimco and Westwood is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Global Multi Asset and Westwood Largecap Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westwood Largecap Value and Pimco Global 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 Global Multi Asset are associated (or correlated) with Westwood Largecap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westwood Largecap Value has no effect on the direction of Pimco Global i.e., Pimco Global and Westwood Largecap go up and down completely randomly.
Pair Corralation between Pimco Global and Westwood Largecap
Assuming the 90 days horizon Pimco Global Multi Asset is expected to generate 0.64 times more return on investment than Westwood Largecap. However, Pimco Global Multi Asset is 1.56 times less risky than Westwood Largecap. It trades about 0.09 of its potential returns per unit of risk. Westwood Largecap Value is currently generating about 0.02 per unit of risk. If you would invest 1,365 in Pimco Global Multi Asset on December 4, 2024 and sell it today you would earn a total of 159.00 from holding Pimco Global Multi Asset or generate 11.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Global Multi Asset vs. Westwood Largecap Value
Performance |
| Timeline |
| Pimco Global Multi |
| Westwood Largecap Value |
Pimco Global and Westwood Largecap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Global and Westwood Largecap
The main advantage of trading using opposite Pimco Global and Westwood Largecap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Global position performs unexpectedly, Westwood Largecap 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 Westwood Largecap will offset losses from the drop in Westwood Largecap's long position.| Pimco Global vs. Old Westbury Short Term | Pimco Global vs. Blackrock Global Longshort | Pimco Global vs. Catholic Responsible Investments | Pimco Global vs. John Hancock Variable |
| Westwood Largecap vs. Pimco Energy Tactical | Westwood Largecap vs. Invesco Energy Fund | Westwood Largecap vs. Blackrock All Cap Energy | Westwood Largecap vs. World Energy Fund |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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