Correlation Between Pimco Real and Astor Long/short
Can any of the company-specific risk be diversified away by investing in both Pimco Real and Astor Long/short 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 Real and Astor Long/short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Real Return and Astor Longshort Fund, you can compare the effects of market volatilities on Pimco Real and Astor Long/short 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 Real with a short position of Astor Long/short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Real and Astor Long/short.
Diversification Opportunities for Pimco Real and Astor Long/short
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PIMCO and Astor is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Real Return and Astor Longshort Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Long/short and Pimco Real 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 Real Return are associated (or correlated) with Astor Long/short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astor Long/short has no effect on the direction of Pimco Real i.e., Pimco Real and Astor Long/short go up and down completely randomly.
Pair Corralation between Pimco Real and Astor Long/short
Assuming the 90 days horizon Pimco Real Return is expected to under-perform the Astor Long/short. But the mutual fund apears to be less risky and, when comparing its historical volatility, Pimco Real Return is 1.27 times less risky than Astor Long/short. The mutual fund trades about -0.02 of its potential returns per unit of risk. The Astor Longshort Fund is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 1,356 in Astor Longshort Fund on September 4, 2024 and sell it today you would earn a total of 75.00 from holding Astor Longshort Fund or generate 5.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Real Return vs. Astor Longshort Fund
Performance |
| Timeline |
| Pimco Real Return |
| Astor Long/short |
Pimco Real and Astor Long/short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Real and Astor Long/short
The main advantage of trading using opposite Pimco Real and Astor Long/short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Real position performs unexpectedly, Astor Long/short 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 Astor Long/short will offset losses from the drop in Astor Long/short's long position.| Pimco Real vs. Astor Longshort Fund | Pimco Real vs. Quantitative Longshort Equity | Pimco Real vs. Old Westbury Short Term | Pimco Real vs. Locorr Longshort Modities |
| Astor Long/short vs. Virtus Seix Government | Astor Long/short vs. Dunham Porategovernment Bond | Astor Long/short vs. Dreyfus Government Cash | Astor Long/short vs. Dws Government Money |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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