Correlation Between PIMCO Equitiy and DOW

Analyzing existing cross correlation between PIMCO Equitiy Series PIMCO RAFI and DOW. You can compare the effects of market volatilities on PIMCO Equitiy and DOW 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 Equitiy with a short position of DOW. Check out your portfolio center. Please also check ongoing floating volatility patterns of PIMCO Equitiy and DOW.

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Diversification Opportunities for PIMCO Equitiy and DOW

PIMCO Equitiy Series PIMCO RAF diversification synergy
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Very weak diversification

The 3 months correlation between PIMCO and DOW is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding PIMCO Equitiy Series PIMCO RAF and DOW in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on DOW and PIMCO Equitiy 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 Equitiy Series PIMCO RAFI are associated (or correlated) with DOW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DOW has no effect on the direction of PIMCO Equitiy i.e. PIMCO Equitiy and DOW go up and down completely randomly.

Pair Corralation between PIMCO Equitiy and DOW

Given the investment horizon of 30 days, PIMCO Equitiy Series PIMCO RAFI is expected to under-perform the DOW. In addition to that, PIMCO Equitiy is 1.14 times more volatile than DOW. It trades about -0.07 of its total potential returns per unit of risk. DOW is currently generating about -0.01 per unit of volatility. If you would invest  2,816,400  in DOW on January 26, 2020 and sell it today you would lose (20,320)  from holding DOW or give up 0.72% of portfolio value over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
ValuesDaily Returns

PIMCO Equitiy Series PIMCO RAF  vs.  DOW

 Performance (%) 
 Predicted Return Density 
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