Correlation Between Pimco Trends and Stewart Global
Can any of the company-specific risk be diversified away by investing in both Pimco Trends and Stewart Global 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 Stewart Global 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 Stewart Global Equity, you can compare the effects of market volatilities on Pimco Trends and Stewart Global 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 Stewart Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Trends and Stewart Global.
Diversification Opportunities for Pimco Trends and Stewart Global
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pimco and Stewart is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Trends Managed and Stewart Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stewart Global Equity 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 Stewart Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stewart Global Equity has no effect on the direction of Pimco Trends i.e., Pimco Trends and Stewart Global go up and down completely randomly.
Pair Corralation between Pimco Trends and Stewart Global
Assuming the 90 days horizon Pimco Trends Managed is expected to under-perform the Stewart Global. But the mutual fund apears to be less risky and, when comparing its historical volatility, Pimco Trends Managed is 1.44 times less risky than Stewart Global. The mutual fund trades about -0.07 of its potential returns per unit of risk. The Stewart Global Equity is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 3,518 in Stewart Global Equity on December 3, 2024 and sell it today you would lose (45.00) from holding Stewart Global Equity or give up 1.28% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 98.36% |
Values | Daily Returns |
Pimco Trends Managed vs. Stewart Global Equity
Performance |
Timeline |
Pimco Trends Managed |
Stewart Global Equity |
Pimco Trends and Stewart Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pimco Trends and Stewart Global
The main advantage of trading using opposite Pimco Trends and Stewart Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Trends position performs unexpectedly, Stewart Global 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 Stewart Global will offset losses from the drop in Stewart Global's long position.Pimco Trends vs. Asg Managed Futures | Pimco Trends vs. Asg Managed Futures | Pimco Trends vs. Aqr Managed Futures | Pimco Trends vs. iMGP DBi Managed |
Stewart Global vs. Steward Small Mid Cap | Stewart Global vs. Steward Large Cap | Stewart Global vs. Steward International Enhanced | Stewart Global vs. Steward Select Bond |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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