Correlation Between Pimco Rae and Astor Long/short
Can any of the company-specific risk be diversified away by investing in both Pimco Rae 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 Rae 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 Rae Worldwide and Astor Longshort Fund, you can compare the effects of market volatilities on Pimco Rae 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 Rae with a short position of Astor Long/short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Rae and Astor Long/short.
Diversification Opportunities for Pimco Rae and Astor Long/short
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Pimco and Astor is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Rae Worldwide 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 Rae 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 Rae Worldwide 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 Rae i.e., Pimco Rae and Astor Long/short go up and down completely randomly.
Pair Corralation between Pimco Rae and Astor Long/short
Assuming the 90 days horizon Pimco Rae Worldwide is expected to generate 1.23 times more return on investment than Astor Long/short. However, Pimco Rae is 1.23 times more volatile than Astor Longshort Fund. It trades about 0.12 of its potential returns per unit of risk. Astor Longshort Fund is currently generating about 0.14 per unit of risk. If you would invest 686.00 in Pimco Rae Worldwide on September 1, 2024 and sell it today you would earn a total of 149.00 from holding Pimco Rae Worldwide or generate 21.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Rae Worldwide vs. Astor Longshort Fund
Performance |
| Timeline |
| Pimco Rae Worldwide |
| Astor Long/short |
Pimco Rae and Astor Long/short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Rae and Astor Long/short
The main advantage of trading using opposite Pimco Rae and Astor Long/short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Rae 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 Rae vs. Siit Emerging Markets | Pimco Rae vs. Aqr Long Short Equity | Pimco Rae vs. Vanguard Developed Markets | Pimco Rae vs. Goldman Sachs Emerging |
| Astor Long/short vs. Fidelity Real Estate | Astor Long/short vs. Prudential Real Estate | Astor Long/short vs. Deutsche Real Estate | Astor Long/short vs. Virtus Real Estate |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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