Correlation Between Pimco Trends and Steward Covered
Can any of the company-specific risk be diversified away by investing in both Pimco Trends and Steward Covered 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 Steward Covered 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 Steward Ered Call, you can compare the effects of market volatilities on Pimco Trends and Steward Covered 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 Steward Covered. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Trends and Steward Covered.
Diversification Opportunities for Pimco Trends and Steward Covered
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PIMCO and Steward is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Trends Managed and Steward Ered Call in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steward Ered Call 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 Steward Covered. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steward Ered Call has no effect on the direction of Pimco Trends i.e., Pimco Trends and Steward Covered go up and down completely randomly.
Pair Corralation between Pimco Trends and Steward Covered
Assuming the 90 days horizon Pimco Trends Managed is expected to under-perform the Steward Covered. But the mutual fund apears to be less risky and, when comparing its historical volatility, Pimco Trends Managed is 1.23 times less risky than Steward Covered. The mutual fund trades about -0.02 of its potential returns per unit of risk. The Steward Ered Call is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 735.00 in Steward Ered Call on November 27, 2024 and sell it today you would earn a total of 68.00 from holding Steward Ered Call or generate 9.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Trends Managed vs. Steward Ered Call
Performance |
| Timeline |
| Pimco Trends Managed |
| Steward Ered Call |
Pimco Trends and Steward Covered Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Trends and Steward Covered
The main advantage of trading using opposite Pimco Trends and Steward Covered positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Trends position performs unexpectedly, Steward Covered 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 Steward Covered will offset losses from the drop in Steward Covered's long position.| Pimco Trends vs. Multisector Bond Sma | Pimco Trends vs. Versatile Bond Portfolio | Pimco Trends vs. Morningstar Defensive Bond | Pimco Trends vs. Goldman Sachs Bond |
| Steward Covered vs. Pimco Energy Tactical | Steward Covered vs. Fidelity Advisor Energy | Steward Covered vs. Transamerica Mlp Energy | Steward Covered vs. Transamerica Mlp Energy |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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