Correlation Between Pacific Funds and Short-intermediate
Can any of the company-specific risk be diversified away by investing in both Pacific Funds and Short-intermediate 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 Pacific Funds and Short-intermediate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pacific Funds Floating and Short Intermediate Bond Fund, you can compare the effects of market volatilities on Pacific Funds and Short-intermediate 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 Pacific Funds with a short position of Short-intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pacific Funds and Short-intermediate.
Diversification Opportunities for Pacific Funds and Short-intermediate
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pacific and Short-intermediate is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Pacific Funds Floating and Short Intermediate Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Short Intermediate Bond and Pacific Funds 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 Pacific Funds Floating are associated (or correlated) with Short-intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Short Intermediate Bond has no effect on the direction of Pacific Funds i.e., Pacific Funds and Short-intermediate go up and down completely randomly.
Pair Corralation between Pacific Funds and Short-intermediate
Assuming the 90 days horizon Pacific Funds Floating is expected to generate 1.07 times more return on investment than Short-intermediate. However, Pacific Funds is 1.07 times more volatile than Short Intermediate Bond Fund. It trades about 0.47 of its potential returns per unit of risk. Short Intermediate Bond Fund is currently generating about 0.17 per unit of risk. If you would invest 908.00 in Pacific Funds Floating on April 10, 2025 and sell it today you would earn a total of 37.00 from holding Pacific Funds Floating or generate 4.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pacific Funds Floating vs. Short Intermediate Bond Fund
Performance |
| Timeline |
| Pacific Funds Floating |
| Short Intermediate Bond |
Pacific Funds and Short-intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pacific Funds and Short-intermediate
The main advantage of trading using opposite Pacific Funds and Short-intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pacific Funds position performs unexpectedly, Short-intermediate 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 Short-intermediate will offset losses from the drop in Short-intermediate's long position.| Pacific Funds vs. Ep Emerging Markets | Pacific Funds vs. Franklin Emerging Market | Pacific Funds vs. Mondrian Emerging Markets | Pacific Funds vs. Investec Emerging Markets |
| Short-intermediate vs. Tributary Smallmid Cap | Short-intermediate vs. Tributary Smallmid Cap | Short-intermediate vs. Balanced Fund Institutional | Short-intermediate vs. Balanced Fund Institutional |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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