Correlation Between Pimco Trends and Asg Managed
Can any of the company-specific risk be diversified away by investing in both Pimco Trends and Asg Managed 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 Trends and Asg Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Trends Managed and Asg Managed Futures, you can compare the effects of market volatilities on Pimco Trends and Asg Managed 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 Trends with a short position of Asg Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Trends and Asg Managed.
Diversification Opportunities for Pimco Trends and Asg Managed
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pimco and Asg is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Trends Managed and Asg Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asg Managed Futures and Pimco Trends 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 Trends Managed are associated (or correlated) with Asg Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asg Managed Futures has no effect on the direction of Pimco Trends i.e., Pimco Trends and Asg Managed go up and down completely randomly.
Pair Corralation between Pimco Trends and Asg Managed
Assuming the 90 days horizon Pimco Trends Managed is expected to under-perform the Asg Managed. But the mutual fund apears to be less risky and, when comparing its historical volatility, Pimco Trends Managed is 1.54 times less risky than Asg Managed. The mutual fund trades about -0.09 of its potential returns per unit of risk. The Asg Managed Futures is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 868.00 in Asg Managed Futures on October 19, 2024 and sell it today you would earn a total of 3.00 from holding Asg Managed Futures or generate 0.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Trends Managed vs. Asg Managed Futures
Performance |
| Timeline |
| Pimco Trends Managed |
| Asg Managed Futures |
Pimco Trends and Asg Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Trends and Asg Managed
The main advantage of trading using opposite Pimco Trends and Asg Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Trends position performs unexpectedly, Asg Managed 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 Asg Managed will offset losses from the drop in Asg Managed's long position.| Pimco Trends vs. Asg Managed Futures | Pimco Trends vs. Asg Managed Futures | Pimco Trends vs. Aqr Managed Futures | Pimco Trends vs. iMGP DBi Managed |
| Asg Managed vs. Aqr Managed Futures | Asg Managed vs. Pimco Trends Managed | Asg Managed vs. Eaton Vance Global | Asg Managed vs. Aqr Managed Futures |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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