Correlation Between Pimco Stocksplus and Grizzly Short

Can any of the company-specific risk be diversified away by investing in both Pimco Stocksplus and Grizzly 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 Stocksplus and Grizzly Short into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Pimco Stocksplus Short and Grizzly Short Fund, you can compare the effects of market volatilities on Pimco Stocksplus and Grizzly 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 Stocksplus with a short position of Grizzly Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Stocksplus and Grizzly Short.

Diversification Opportunities for Pimco Stocksplus and Grizzly Short

0.97

Correlation Coefficient

Pimco Stocksplus  Grizzly Short

Almost no diversification

The 3 months correlation between Pimco and Grizzly is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Stocksplus Short and Grizzly Short Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grizzly Short and Pimco Stocksplus 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 Stocksplus Short are associated (or correlated) with Grizzly Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grizzly Short has no effect on the direction of Pimco Stocksplus i.e., Pimco Stocksplus and Grizzly Short go up and down completely randomly.

Pair Corralation between Pimco Stocksplus and Grizzly Short

Assuming the 90 days horizon Pimco Stocksplus Short is expected to generate 1.1 times more return on investment than Grizzly Short. However, Pimco Stocksplus is 1.1 times more volatile than Grizzly Short Fund. It trades about 0.13 of its potential returns per unit of risk. Grizzly Short Fund is currently generating about 0.1 per unit of risk. If you would invest  705.00  in Pimco Stocksplus Short on December 29, 2024 and sell it today you would earn a total of  59.00  from holding Pimco Stocksplus Short or generate 8.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Pimco Stocksplus Short  vs.  Grizzly Short Fund

Pimco Stocksplus Short

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Pimco Stocksplus Short are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Pimco Stocksplus may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Grizzly Short

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Grizzly Short Fund are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Grizzly Short is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Pimco Stocksplus and Grizzly Short

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

The idea behind Pimco Stocksplus Short and Grizzly Short Fund 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.