Correlation Between Pimco All and Simt Multi-asset
Can any of the company-specific risk be diversified away by investing in both Pimco All and Simt Multi-asset 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 All and Simt Multi-asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco All Asset and Simt Multi Asset Accumulation, you can compare the effects of market volatilities on Pimco All and Simt Multi-asset 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 All with a short position of Simt Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco All and Simt Multi-asset.
Diversification Opportunities for Pimco All and Simt Multi-asset
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Pimco and Simt is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Pimco All Asset and Simt Multi Asset Accumulation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Multi Asset and Pimco All 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 All Asset are associated (or correlated) with Simt Multi-asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Multi Asset has no effect on the direction of Pimco All i.e., Pimco All and Simt Multi-asset go up and down completely randomly.
Pair Corralation between Pimco All and Simt Multi-asset
Assuming the 90 days horizon Pimco All Asset is expected to generate 0.71 times more return on investment than Simt Multi-asset. However, Pimco All Asset is 1.4 times less risky than Simt Multi-asset. It trades about 0.07 of its potential returns per unit of risk. Simt Multi Asset Accumulation is currently generating about 0.04 per unit of risk. If you would invest 982.00 in Pimco All Asset on April 2, 2025 and sell it today you would earn a total of 147.00 from holding Pimco All Asset or generate 14.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Pimco All Asset vs. Simt Multi Asset Accumulation
Performance |
| Timeline |
| Pimco All Asset |
| Simt Multi Asset |
Pimco All and Simt Multi-asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco All and Simt Multi-asset
The main advantage of trading using opposite Pimco All and Simt Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco All position performs unexpectedly, Simt Multi-asset 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 Simt Multi-asset will offset losses from the drop in Simt Multi-asset's long position.| Pimco All vs. Putnam Global Financials | Pimco All vs. John Hancock Financial | Pimco All vs. Angel Oak Financial | Pimco All vs. Financials Ultrasector Profund |
| Simt Multi-asset vs. Columbia Global Technology | Simt Multi-asset vs. T Rowe Price | Simt Multi-asset vs. Science Technology Fund | Simt Multi-asset vs. T Rowe Price |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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