Correlation Between Pimco Rae and Rbc Funds

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

By analyzing existing cross correlation between Pimco Rae Fundamental and Rbc Funds Trust, you can compare the effects of market volatilities on Pimco Rae and Rbc Funds 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 Rae with a short position of Rbc Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Rae and Rbc Funds.

Diversification Opportunities for Pimco Rae and Rbc Funds

0.74

Correlation Coefficient

Pimco Rae  Rbc Funds

Poor diversification

The 3 months correlation between Pimco and Rbc is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Rae Fundamental and Rbc Funds Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rbc Funds Trust and Pimco Rae 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 Rae Fundamental are associated (or correlated) with Rbc Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rbc Funds Trust has no effect on the direction of Pimco Rae i.e., Pimco Rae and Rbc Funds go up and down completely randomly.

Pair Corralation between Pimco Rae and Rbc Funds

Assuming the 90 days horizon Pimco Rae Fundamental is expected to generate 4.06 times more return on investment than Rbc Funds. However, Pimco Rae is 4.06 times more volatile than Rbc Funds Trust. It trades about 0.13 of its potential returns per unit of risk. Rbc Funds Trust is currently generating about 0.21 per unit of risk. If you would invest  1,010  in Pimco Rae Fundamental on May 26, 2025 and sell it today you would earn a total of  92.00  from holding Pimco Rae Fundamental or generate 9.11% return on investment over 90 days.

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

Pimco Rae Fundamental  vs.  Rbc Funds Trust

Pimco Rae Fundamental

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Pimco Rae Fundamental 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 Rae may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Rbc Funds Trust

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Rbc Funds Trust are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Rbc Funds 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 Rae and Rbc Funds

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

The idea behind Pimco Rae Fundamental and Rbc Funds Trust 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.