Pair Correlation Between DOW and PIMCO Equitiy

This module allows you to analyze existing cross correlation between DOW and PIMCO Equitiy Series RAFI Dynamic Multi-Factor Emerging Markets Equity. You can compare the effects of market volatilities on DOW and PIMCO Equitiy 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 DOW with a short position of PIMCO Equitiy. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and PIMCO Equitiy.
 Time Horizon     30 Days    Login   to change
Symbolsvs
 DOW  vs   PIMCO Equitiy Series RAFI Dyna
 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 1.5 times less return on investment than PIMCO Equitiy. But when comparing it to its historical volatility, DOW is 1.23 times less risky than PIMCO Equitiy. It trades about 0.55 of its potential returns per unit of risk. PIMCO Equitiy Series RAFI Dynamic Multi-Factor Emerging Markets Equity is currently generating about 0.67 of returns per unit of risk over similar time horizon. If you would invest  2,556  in PIMCO Equitiy Series RAFI Dynamic Multi-Factor Emerging Markets Equity on December 18, 2017 and sell it today you would earn a total of  175.6  from holding PIMCO Equitiy Series RAFI Dynamic Multi-Factor Emerging Markets Equity or generate 6.87% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between DOW and PIMCO Equitiy
0.88

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthStrong
Accuracy90.48%
ValuesDaily Returns

Diversification

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding DOW and PIMCO Equitiy Series RAFI Dyna in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on PIMCO Equitiy Series and DOW 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 DOW are associated (or correlated) with PIMCO Equitiy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PIMCO Equitiy Series has no effect on the direction of DOW i.e. DOW and PIMCO Equitiy go up and down completely randomly.
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Comparative Volatility

 Predicted Return Density 
      Returns