Correlation Between Pimco Dynamic and Blackstone Gso

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

By analyzing existing cross correlation between Pimco Dynamic Income and Blackstone Gso Long, you can compare the effects of market volatilities on Pimco Dynamic and Blackstone Gso 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 Dynamic with a short position of Blackstone Gso. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Dynamic and Blackstone Gso.

Diversification Opportunities for Pimco Dynamic and Blackstone Gso

0.11

Correlation Coefficient

Pimco Dynamic  Blackstone Gso

Average diversification

The 3 months correlation between Pimco and Blackstone is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Dynamic Income and Blackstone Gso Long in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Gso Long and Pimco Dynamic 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 Dynamic Income are associated (or correlated) with Blackstone Gso. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Gso Long has no effect on the direction of Pimco Dynamic i.e., Pimco Dynamic and Blackstone Gso go up and down completely randomly.

Pair Corralation between Pimco Dynamic and Blackstone Gso

Considering the 90-day investment horizon Pimco Dynamic is expected to generate 1.22 times less return on investment than Blackstone Gso. In addition to that, Pimco Dynamic is 1.06 times more volatile than Blackstone Gso Long. It trades about 0.05 of its total potential returns per unit of risk. Blackstone Gso Long is currently generating about 0.06 per unit of volatility. If you would invest  1,261  in Blackstone Gso Long on August 31, 2024 and sell it today you would earn a total of  27.00  from holding Blackstone Gso Long or generate 2.14% return on investment over 90 days.

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

Pimco Dynamic Income  vs.  Blackstone Gso Long

Pimco Dynamic Income

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Pimco Dynamic Income are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy fundamental indicators, Pimco Dynamic is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Blackstone Gso Long

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Blackstone Gso Long are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Blackstone Gso is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Pimco Dynamic and Blackstone Gso

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

The idea behind Pimco Dynamic Income and Blackstone Gso Long 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.

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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.