Correlation Between Pimco Trends and Fam Value
Can any of the company-specific risk be diversified away by investing in both Pimco Trends and Fam Value 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 Fam Value 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 Fam Value Fund, you can compare the effects of market volatilities on Pimco Trends and Fam Value 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 Fam Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Trends and Fam Value.
Diversification Opportunities for Pimco Trends and Fam Value
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pimco and Fam is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Trends Managed and Fam Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fam Value Fund 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 Fam Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fam Value Fund has no effect on the direction of Pimco Trends i.e., Pimco Trends and Fam Value go up and down completely randomly.
Pair Corralation between Pimco Trends and Fam Value
Assuming the 90 days horizon Pimco Trends Managed is expected to generate 0.62 times more return on investment than Fam Value. However, Pimco Trends Managed is 1.61 times less risky than Fam Value. It trades about 0.16 of its potential returns per unit of risk. Fam Value Fund is currently generating about -0.01 per unit of risk. If you would invest 960.00 in Pimco Trends Managed on August 29, 2025 and sell it today you would earn a total of 49.00 from holding Pimco Trends Managed or generate 5.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Trends Managed vs. Fam Value Fund
Performance |
| Timeline |
| Pimco Trends Managed |
| Fam Value Fund |
Pimco Trends and Fam Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Trends and Fam Value
The main advantage of trading using opposite Pimco Trends and Fam Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Trends position performs unexpectedly, Fam Value 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 Fam Value will offset losses from the drop in Fam Value's long position.| Pimco Trends vs. Pimco Rae Worldwide | Pimco Trends vs. Pimco Rae Worldwide | Pimco Trends vs. Pimco Rae Worldwide | Pimco Trends vs. Pimco Rae Worldwide |
| Fam Value vs. Small Cap Value Profund | Fam Value vs. Small Cap Growth Profund | Fam Value vs. Ultramid Cap Profund Ultramid Cap | Fam Value vs. Mid Cap Value Profund |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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