Correlation Between PIMCO Monthly and Mackenzie All

Can any of the company-specific risk be diversified away by investing in both PIMCO Monthly and Mackenzie All 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 Monthly and Mackenzie All into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PIMCO Monthly Income and Mackenzie All Cap, you can compare the effects of market volatilities on PIMCO Monthly and Mackenzie All 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 Monthly with a short position of Mackenzie All. Check out your portfolio center. Please also check ongoing floating volatility patterns of PIMCO Monthly and Mackenzie All.

Diversification Opportunities for PIMCO Monthly and Mackenzie All

-0.35

Correlation Coefficient

PIMCO Monthly  Mackenzie All

Very good diversification

The 3 months correlation between PIMCO and Mackenzie is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding PIMCO Monthly Income and Mackenzie All Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mackenzie All Cap and PIMCO Monthly 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 Monthly Income are associated (or correlated) with Mackenzie All. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mackenzie All Cap has no effect on the direction of PIMCO Monthly i.e., PIMCO Monthly and Mackenzie All go up and down completely randomly.

Pair Corralation between PIMCO Monthly and Mackenzie All

Assuming the 90 days trading horizon PIMCO Monthly Income is expected to under-perform the Mackenzie All. But the fund apears to be less risky and, when comparing its historical volatility, PIMCO Monthly Income is 4.21 times less risky than Mackenzie All. The fund trades about -0.15 of its potential returns per unit of risk. The Mackenzie All Cap is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  5,600  in Mackenzie All Cap on October 24, 2024 and sell it today you would earn a total of  644.00  from holding Mackenzie All Cap or generate 11.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

PIMCO Monthly Income  vs.  Mackenzie All Cap

PIMCO Monthly Income

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PIMCO Monthly Income has generated negative risk-adjusted returns adding no value to fund investors. In spite of comparatively stable basic indicators, PIMCO Monthly is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Mackenzie All Cap

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mackenzie All Cap are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat weak basic indicators, Mackenzie All may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with PIMCO Monthly and Mackenzie All

The main advantage of trading using opposite PIMCO Monthly and Mackenzie All positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PIMCO Monthly position performs unexpectedly, Mackenzie All 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 Mackenzie All will offset losses from the drop in Mackenzie All's long position.

The idea behind PIMCO Monthly Income and Mackenzie All Cap pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.