Correlation Between Pimco Rae and Stocksplus Fund

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

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

Diversification Opportunities for Pimco Rae and Stocksplus Fund

-0.81

Correlation Coefficient

Pimco Rae  Stocksplus Fund

Pay attention - limited upside

The 3 months correlation between Pimco and Stocksplus is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Rae Worldwide and Stocksplus Fund C in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stocksplus Fund C 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 Worldwide are associated (or correlated) with Stocksplus Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stocksplus Fund C has no effect on the direction of Pimco Rae i.e., Pimco Rae and Stocksplus Fund go up and down completely randomly.

Pair Corralation between Pimco Rae and Stocksplus Fund

Assuming the 90 days horizon Pimco Rae Worldwide is expected to under-perform the Stocksplus Fund. But the mutual fund apears to be less risky and, when comparing its historical volatility, Pimco Rae Worldwide is 1.23 times less risky than Stocksplus Fund. The mutual fund trades about -0.12 of its potential returns per unit of risk. The Stocksplus Fund C is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest  890.00  in Stocksplus Fund C on May 4, 2025 and sell it today you would earn a total of  118.00  from holding Stocksplus Fund C or generate 13.26% return on investment over 90 days.

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

Pimco Rae Worldwide  vs.  Stocksplus Fund C

Pimco Rae Worldwide

Risk-Adjusted Performance

Very Weak

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

Stocksplus Fund C

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Stocksplus Fund C are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Stocksplus Fund showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Pimco Rae and Stocksplus Fund

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

The idea behind Pimco Rae Worldwide and Stocksplus Fund C 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 Commodity Directory module to find actively traded commodities issued by global exchanges.