Correlation Between Pimco Trends and Brandes Global
Can any of the company-specific risk be diversified away by investing in both Pimco Trends and Brandes Global 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 Brandes Global 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 Brandes Global Equity, you can compare the effects of market volatilities on Pimco Trends and Brandes Global 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 Brandes Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Trends and Brandes Global.
Diversification Opportunities for Pimco Trends and Brandes Global
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pimco and Brandes is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Trends Managed and Brandes Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brandes Global Equity 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 Brandes Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brandes Global Equity has no effect on the direction of Pimco Trends i.e., Pimco Trends and Brandes Global go up and down completely randomly.
Pair Corralation between Pimco Trends and Brandes Global
Assuming the 90 days horizon Pimco Trends Managed is expected to under-perform the Brandes Global. But the mutual fund apears to be less risky and, when comparing its historical volatility, Pimco Trends Managed is 1.45 times less risky than Brandes Global. The mutual fund trades about -0.12 of its potential returns per unit of risk. The Brandes Global Equity is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,966 in Brandes Global Equity on September 1, 2024 and sell it today you would earn a total of 175.00 from holding Brandes Global Equity or generate 5.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Pimco Trends Managed vs. Brandes Global Equity
Performance |
| Timeline |
| Pimco Trends Managed |
| Brandes Global Equity |
Pimco Trends and Brandes Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Trends and Brandes Global
The main advantage of trading using opposite Pimco Trends and Brandes Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Trends position performs unexpectedly, Brandes Global 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 Brandes Global will offset losses from the drop in Brandes Global's long position.| Pimco Trends vs. Queens Road Small | Pimco Trends vs. Ab Discovery Value | Pimco Trends vs. Mutual Of America | Pimco Trends vs. American Century Etf |
| Brandes Global vs. Brandes Small Cap | Brandes Global vs. Brandes Small Cap | Brandes Global vs. Brandes Small Cap | Brandes Global vs. Brandes E Plus |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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