Correlation Between Allianzgi Technology and Pimco Long-term

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

By analyzing existing cross correlation between Allianzgi Technology Fund and Pimco Long Term Credit, you can compare the effects of market volatilities on Allianzgi Technology and Pimco Long-term 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 Allianzgi Technology with a short position of Pimco Long-term. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Technology and Pimco Long-term.

Diversification Opportunities for Allianzgi Technology and Pimco Long-term

-0.56

Correlation Coefficient

Allianzgi Technology  Pimco Long-term

Excellent diversification

The 3 months correlation between Allianzgi and Pimco is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Technology Fund and Pimco Long Term Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Long Term and Allianzgi Technology 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 Allianzgi Technology Fund are associated (or correlated) with Pimco Long-term. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Long Term has no effect on the direction of Allianzgi Technology i.e., Allianzgi Technology and Pimco Long-term go up and down completely randomly.

Pair Corralation between Allianzgi Technology and Pimco Long-term

Assuming the 90 days horizon Allianzgi Technology Fund is expected to under-perform the Pimco Long-term. In addition to that, Allianzgi Technology is 3.14 times more volatile than Pimco Long Term Credit. It trades about -0.12 of its total potential returns per unit of risk. Pimco Long Term Credit is currently generating about 0.1 per unit of volatility. If you would invest  856.00  in Pimco Long Term Credit on December 22, 2024 and sell it today you would earn a total of  30.00  from holding Pimco Long Term Credit or generate 3.5% return on investment over 90 days.

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

Allianzgi Technology Fund  vs.  Pimco Long Term Credit

Allianzgi Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Allianzgi Technology Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pimco Long Term

Risk-Adjusted Performance

OK

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

Pair Trading with Allianzgi Technology and Pimco Long-term

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

The idea behind Allianzgi Technology Fund and Pimco Long Term Credit 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.

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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.