Correlation Between Pimco Trends and Large Cap
Can any of the company-specific risk be diversified away by investing in both Pimco Trends and Large Cap 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 Large Cap 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 Large Cap Value, you can compare the effects of market volatilities on Pimco Trends and Large Cap 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 Large Cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Trends and Large Cap.
Diversification Opportunities for Pimco Trends and Large Cap
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pimco and Large is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Trends Managed and Large Cap Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Large Cap Value 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 Large Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Large Cap Value has no effect on the direction of Pimco Trends i.e., Pimco Trends and Large Cap go up and down completely randomly.
Pair Corralation between Pimco Trends and Large Cap
Assuming the 90 days horizon Pimco Trends Managed is expected to generate 0.61 times more return on investment than Large Cap. However, Pimco Trends Managed is 1.64 times less risky than Large Cap. It trades about 0.21 of its potential returns per unit of risk. Large Cap Value is currently generating about -0.01 per unit of risk. If you would invest 971.00 in Pimco Trends Managed on July 23, 2025 and sell it today you would earn a total of 57.00 from holding Pimco Trends Managed or generate 5.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Pimco Trends Managed vs. Large Cap Value
Performance |
| Timeline |
| Pimco Trends Managed |
| Large Cap Value |
Pimco Trends and Large Cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Trends and Large Cap
The main advantage of trading using opposite Pimco Trends and Large Cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Trends position performs unexpectedly, Large Cap 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 Large Cap will offset losses from the drop in Large Cap's long position.| Pimco Trends vs. Pimco Rae Worldwide | Pimco Trends vs. Pimco Realestaterealreturn Strategy | Pimco Trends vs. Pimco Rae Worldwide | Pimco Trends vs. Pimco Rae Worldwide |
| Large Cap vs. Schwab Health Care | Large Cap vs. Health Care Ultrasector | Large Cap vs. Fidelity Advisor Health | Large Cap vs. Vanguard Health Care |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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