Correlation Between Pimco Trends and Canfor
Can any of the company-specific risk be diversified away by investing in both Pimco Trends and Canfor 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 Trends and Canfor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Trends Managed and Canfor, you can compare the effects of market volatilities on Pimco Trends and Canfor 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 Trends with a short position of Canfor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Trends and Canfor.
Diversification Opportunities for Pimco Trends and Canfor
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pimco and Canfor is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Trends Managed and Canfor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canfor and Pimco Trends 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 Trends Managed are associated (or correlated) with Canfor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canfor has no effect on the direction of Pimco Trends i.e., Pimco Trends and Canfor go up and down completely randomly.
Pair Corralation between Pimco Trends and Canfor
Assuming the 90 days horizon Pimco Trends Managed is expected to under-perform the Canfor. But the mutual fund apears to be less risky and, when comparing its historical volatility, Pimco Trends Managed is 2.31 times less risky than Canfor. The mutual fund trades about -0.3 of its potential returns per unit of risk. The Canfor is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,207 in Canfor on July 25, 2024 and sell it today you would earn a total of 17.00 from holding Canfor or generate 1.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.65% |
Values | Daily Returns |
Pimco Trends Managed vs. Canfor
Performance |
Timeline |
Pimco Trends Managed |
Canfor |
Pimco Trends and Canfor Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pimco Trends and Canfor
The main advantage of trading using opposite Pimco Trends and Canfor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Trends position performs unexpectedly, Canfor 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 Canfor will offset losses from the drop in Canfor's long position.Pimco Trends vs. Pimco Rae Worldwide | Pimco Trends vs. Pimco Preferred And | Pimco Trends vs. Pimco Fundamental Advantage | Pimco Trends vs. Pimco Capital Sec |
Canfor vs. Pimco Trends Managed | Canfor vs. Aviat Networks | Canfor vs. PPG Industries | Canfor vs. Coca Cola Consolidated |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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