Correlation Between Short Term and Pimco Floating
Can any of the company-specific risk be diversified away by investing in both Short Term and Pimco Floating 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 Short Term and Pimco Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Short Term Fund A and Pimco Floating Income, you can compare the effects of market volatilities on Short Term and Pimco Floating 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 Short Term with a short position of Pimco Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Short Term and Pimco Floating.
Diversification Opportunities for Short Term and Pimco Floating
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Short and Pimco is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Short Term Fund A and Pimco Floating Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Floating Income and Short Term 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 Short Term Fund A are associated (or correlated) with Pimco Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Floating Income has no effect on the direction of Short Term i.e., Short Term and Pimco Floating go up and down completely randomly.
Pair Corralation between Short Term and Pimco Floating
Assuming the 90 days horizon Short Term Fund A is expected to generate 0.63 times more return on investment than Pimco Floating. However, Short Term Fund A is 1.58 times less risky than Pimco Floating. It trades about 0.25 of its potential returns per unit of risk. Pimco Floating Income is currently generating about -0.04 per unit of risk. If you would invest 953.00 in Short Term Fund A on September 24, 2024 and sell it today you would earn a total of 15.00 from holding Short Term Fund A or generate 1.57% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Short Term Fund A vs. Pimco Floating Income
Performance |
Timeline |
Short Term Fund |
Pimco Floating Income |
Short Term and Pimco Floating Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Short Term and Pimco Floating
The main advantage of trading using opposite Short Term and Pimco Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Short Term position performs unexpectedly, Pimco Floating 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 Floating will offset losses from the drop in Pimco Floating's long position.Short Term vs. Pimco Rae Worldwide | Short Term vs. Pimco Rae Worldwide | Short Term vs. Pimco Rae Worldwide | Short Term vs. Pimco Rae Worldwide |
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 |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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