Correlation Between Munivest Fund and Pimco New

Can any of the company-specific risk be diversified away by investing in both Munivest Fund and Pimco New 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 Munivest Fund and Pimco New into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Munivest Fund and Pimco New York, you can compare the effects of market volatilities on Munivest Fund and Pimco New 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 Munivest Fund with a short position of Pimco New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Munivest Fund and Pimco New.

Diversification Opportunities for Munivest Fund and Pimco New

0.78

Correlation Coefficient

Munivest Fund  Pimco New

Poor diversification

The 3 months correlation between Munivest and Pimco is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Munivest Fund and Pimco New York in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco New York and Munivest Fund 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 Munivest Fund are associated (or correlated) with Pimco New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco New York has no effect on the direction of Munivest Fund i.e., Munivest Fund and Pimco New go up and down completely randomly.

Pair Corralation between Munivest Fund and Pimco New

Considering the 90-day investment horizon Munivest Fund is expected to generate 1.2 times more return on investment than Pimco New. However, Munivest Fund is 1.2 times more volatile than Pimco New York. It trades about 0.06 of its potential returns per unit of risk. Pimco New York is currently generating about 0.03 per unit of risk. If you would invest  732.00  in Munivest Fund on September 3, 2024 and sell it today you would earn a total of  17.00  from holding Munivest Fund or generate 2.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Munivest Fund  vs.  Pimco New York

Munivest Fund

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Munivest Fund are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. Despite nearly stable basic indicators, Munivest Fund is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pimco New York

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Pimco New York are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. Despite nearly stable basic indicators, Pimco New is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Munivest Fund and Pimco New

The main advantage of trading using opposite Munivest Fund and Pimco New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Munivest Fund position performs unexpectedly, Pimco New 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 Pimco New will offset losses from the drop in Pimco New's long position.

The idea behind Munivest Fund and Pimco New York pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.