Correlation Between Pimco Trends and Boston Partners
Can any of the company-specific risk be diversified away by investing in both Pimco Trends and Boston Partners 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 Boston Partners 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 Boston Partners Emerging, you can compare the effects of market volatilities on Pimco Trends and Boston Partners 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 Boston Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Trends and Boston Partners.
Diversification Opportunities for Pimco Trends and Boston Partners
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pimco and Boston is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Trends Managed and Boston Partners Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Partners Emerging 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 Boston Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Partners Emerging has no effect on the direction of Pimco Trends i.e., Pimco Trends and Boston Partners go up and down completely randomly.
Pair Corralation between Pimco Trends and Boston Partners
Assuming the 90 days horizon Pimco Trends Managed is expected to generate 1.37 times more return on investment than Boston Partners. However, Pimco Trends is 1.37 times more volatile than Boston Partners Emerging. It trades about 0.17 of its potential returns per unit of risk. Boston Partners Emerging is currently generating about -0.28 per unit of risk. If you would invest 982.00 in Pimco Trends Managed on August 26, 2024 and sell it today you would earn a total of 24.00 from holding Pimco Trends Managed or generate 2.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Trends Managed vs. Boston Partners Emerging
Performance |
| Timeline |
| Pimco Trends Managed |
| Boston Partners Emerging |
Pimco Trends and Boston Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Trends and Boston Partners
The main advantage of trading using opposite Pimco Trends and Boston Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Trends position performs unexpectedly, Boston Partners 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 Boston Partners will offset losses from the drop in Boston Partners' 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 |
| Boston Partners vs. Otter Creek Longshort | Boston Partners vs. Pimco Trends Managed | Boston Partners vs. Boston Partners Longshort | Boston Partners vs. Asg 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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