Correlation Between Pimco Trends and City National
Can any of the company-specific risk be diversified away by investing in both Pimco Trends and City National 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 City National 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 City National Rochdale, you can compare the effects of market volatilities on Pimco Trends and City National 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 City National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Trends and City National.
Diversification Opportunities for Pimco Trends and City National
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pimco and City is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Trends Managed and City National Rochdale in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City National Rochdale 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 City National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City National Rochdale has no effect on the direction of Pimco Trends i.e., Pimco Trends and City National go up and down completely randomly.
Pair Corralation between Pimco Trends and City National
If you would invest 974.00 in Pimco Trends Managed on September 1, 2024 and sell it today you would earn a total of 21.00 from holding Pimco Trends Managed or generate 2.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Pimco Trends Managed vs. City National Rochdale
Performance |
| Timeline |
| Pimco Trends Managed |
| City National Rochdale |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Pimco Trends and City National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Trends and City National
The main advantage of trading using opposite Pimco Trends and City National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Trends position performs unexpectedly, City National 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 City National will offset losses from the drop in City National'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 |
| City National vs. Mirova Global Green | City National vs. Dreyfusstandish Global Fixed | City National vs. Wisdomtree Siegel Global | City National vs. Blue Current Global |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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