| PLRAX Fund | | | USD 7.23 0.04 0.55% |
The current 90-days correlation between Pimco Long Duration and Versatile Bond Portfolio is 0.8 (i.e., Very poor diversification). The correlation of Pimco Long is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.
Pimco Long Correlation With Market
Average diversification
The correlation between Pimco Long Duration and DJI is 0.11 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Long Duration and DJI in the same portfolio, assuming nothing else is changed.
Check out
Your Equity Center to better understand how to build diversified portfolios, which includes a position in Pimco Long Duration. Also, note that the market value of any mutual fund could be closely tied with the direction of predictive economic indicators such as
signals in nation.