Correlation Between Pimco Trends and Aig Government
Can any of the company-specific risk be diversified away by investing in both Pimco Trends and Aig Government 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 Aig Government 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 Aig Government Money, you can compare the effects of market volatilities on Pimco Trends and Aig Government 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 Aig Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Trends and Aig Government.
Diversification Opportunities for Pimco Trends and Aig Government
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pimco and Aig is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Trends Managed and Aig Government Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aig Government Money 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 Aig Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aig Government Money has no effect on the direction of Pimco Trends i.e., Pimco Trends and Aig Government go up and down completely randomly.
Pair Corralation between Pimco Trends and Aig Government
Assuming the 90 days horizon Pimco Trends Managed is expected to generate 2.84 times more return on investment than Aig Government. However, Pimco Trends is 2.84 times more volatile than Aig Government Money. It trades about 0.02 of its potential returns per unit of risk. Aig Government Money is currently generating about -0.06 per unit of risk. If you would invest 1,016 in Pimco Trends Managed on October 26, 2024 and sell it today you would earn a total of 3.00 from holding Pimco Trends Managed or generate 0.3% 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. Aig Government Money
Performance |
| Timeline |
| Pimco Trends Managed |
| Aig Government Money |
Pimco Trends and Aig Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Trends and Aig Government
The main advantage of trading using opposite Pimco Trends and Aig Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Trends position performs unexpectedly, Aig Government 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 Aig Government will offset losses from the drop in Aig Government's long position.| Pimco Trends vs. Aig Government Money | Pimco Trends vs. Dreyfus Government Cash | Pimco Trends vs. Inverse Government Long | Pimco Trends vs. Schwab Government Money |
| Aig Government vs. Hennessy Bp Energy | Aig Government vs. Thrivent Natural Resources | Aig Government vs. Alpsalerian Energy Infrastructure | Aig Government vs. Cohen Steers Mlp |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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