Correlation Between Pimco Floating and Pimco Global
Can any of the company-specific risk be diversified away by investing in both Pimco Floating and Pimco Global 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 Floating and Pimco Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Floating Income and Pimco Global Multi Asset, you can compare the effects of market volatilities on Pimco Floating and Pimco Global 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 Floating with a short position of Pimco Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Floating and Pimco Global.
Diversification Opportunities for Pimco Floating and Pimco Global
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pimco and Pimco is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Floating Income and Pimco Global Multi Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Global Multi and Pimco Floating 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 Floating Income are associated (or correlated) with Pimco Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Global Multi has no effect on the direction of Pimco Floating i.e., Pimco Floating and Pimco Global go up and down completely randomly.
Pair Corralation between Pimco Floating and Pimco Global
Assuming the 90 days horizon Pimco Floating Income is expected to under-perform the Pimco Global. But the mutual fund apears to be less risky and, when comparing its historical volatility, Pimco Floating Income is 3.81 times less risky than Pimco Global. The mutual fund trades about -0.26 of its potential returns per unit of risk. The Pimco Global Multi Asset is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 1,398 in Pimco Global Multi Asset on September 25, 2024 and sell it today you would lose (5.00) from holding Pimco Global Multi Asset or give up 0.36% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.24% |
Values | Daily Returns |
Pimco Floating Income vs. Pimco Global Multi Asset
Performance |
Timeline |
Pimco Floating Income |
Pimco Global Multi |
Pimco Floating and Pimco Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pimco Floating and Pimco Global
The main advantage of trading using opposite Pimco Floating and Pimco Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Floating position performs unexpectedly, Pimco Global 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 Global will offset losses from the drop in Pimco Global's long position.Pimco Floating vs. Short Term Fund A | Pimco Floating vs. Pimco Income Fund | Pimco Floating vs. Pimco Foreign Bond | Pimco Floating vs. All Asset Fund |
Pimco Global vs. Pimco Rae Worldwide | Pimco Global vs. Pimco Rae Worldwide | Pimco Global vs. Pimco Rae Worldwide | Pimco Global vs. Pimco Rae Worldwide |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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