This module allows you to analyze existing cross correlation between PIMCO RAFI Dyn Mlt Fctr Emrg Mkts Eq ETF and Vanguard FTSE Emerging Markets ETF. You can compare the effects of market volatilities on PIMCO RAFI and Vanguard FTSE 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 RAFI with a short position of Vanguard FTSE. See also your portfolio center. Please also check ongoing floating volatility patterns of PIMCO RAFI and Vanguard FTSE.
PIMCO RAFI Dyn Mlt Fctr Emrg M vs. Vanguard FTSE Emerging Markets
Given the investment horizon of 30 days, PIMCO RAFI Dyn Mlt Fctr Emrg Mkts Eq ETF is expected to generate 1.0 times more return on investment than Vanguard FTSE. However, PIMCO RAFI is 1.0 times more volatile than Vanguard FTSE Emerging Markets ETF. It trades about -0.11 of its potential returns per unit of risk. Vanguard FTSE Emerging Markets ETF is currently generating about -0.13 per unit of risk. If you would invest 2,724 in PIMCO RAFI Dyn Mlt Fctr Emrg Mkts Eq ETF on March 25, 2018 and sell it today you would lose (150.47) from holding PIMCO RAFI Dyn Mlt Fctr Emrg Mkts Eq ETF or give up 5.52% of portfolio value over 30 days.
Pair Corralation between PIMCO RAFI and Vanguard FTSE
Overlapping area represents the amount of risk that can be diversified away by holding PIMCO RAFI Dyn Mlt Fctr Emrg M and Vanguard FTSE Emerging Markets in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Vanguard FTSE Emerging and PIMCO RAFI 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 RAFI Dyn Mlt Fctr Emrg Mkts Eq ETF are associated (or correlated) with Vanguard FTSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard FTSE Emerging has no effect on the direction of PIMCO RAFI i.e. PIMCO RAFI and Vanguard FTSE go up and down completely randomly.
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