Correlation Between Pimco Stocksplus and Aqr Large

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

By analyzing existing cross correlation between Pimco Stocksplus Ar and Aqr Large Cap, you can compare the effects of market volatilities on Pimco Stocksplus and Aqr Large 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 Aqr Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Stocksplus and Aqr Large.

Diversification Opportunities for Pimco Stocksplus and Aqr Large

-0.64

Correlation Coefficient

Pimco Stocksplus  Aqr Large

Excellent diversification

The 3 months correlation between Pimco and Aqr is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Stocksplus Ar and Aqr Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Large Cap 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 Ar are associated (or correlated) with Aqr Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Large Cap has no effect on the direction of Pimco Stocksplus i.e., Pimco Stocksplus and Aqr Large go up and down completely randomly.

Pair Corralation between Pimco Stocksplus and Aqr Large

Assuming the 90 days horizon Pimco Stocksplus Ar is expected to generate 0.28 times more return on investment than Aqr Large. However, Pimco Stocksplus Ar is 3.53 times less risky than Aqr Large. It trades about 0.02 of its potential returns per unit of risk. Aqr Large Cap is currently generating about -0.22 per unit of risk. If you would invest  690.00  in Pimco Stocksplus Ar on September 27, 2024 and sell it today you would earn a total of  2.00  from holding Pimco Stocksplus Ar or generate 0.29% return on investment over 90 days.

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

Pimco Stocksplus Ar  vs.  Aqr Large Cap

Pimco Stocksplus

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pimco Stocksplus Ar has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong essential indicators, Pimco Stocksplus is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Aqr Large Cap

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aqr Large Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Aqr Large 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 Aqr Large

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

The idea behind Pimco Stocksplus Ar and Aqr Large 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.