Correlation Between Pimco Stocksplus and Stocksplus Total
Can any of the company-specific risk be diversified away by investing in both Pimco Stocksplus and Stocksplus Total 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 Stocksplus and Stocksplus Total into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Stocksplus Long and Stocksplus Total Return, you can compare the effects of market volatilities on Pimco Stocksplus and Stocksplus Total 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 Stocksplus with a short position of Stocksplus Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Stocksplus and Stocksplus Total.
Diversification Opportunities for Pimco Stocksplus and Stocksplus Total
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pimco and Stocksplus is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Stocksplus Long and Stocksplus Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stocksplus Total Return and Pimco Stocksplus 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 Stocksplus Long are associated (or correlated) with Stocksplus Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stocksplus Total Return has no effect on the direction of Pimco Stocksplus i.e., Pimco Stocksplus and Stocksplus Total go up and down completely randomly.
Pair Corralation between Pimco Stocksplus and Stocksplus Total
Assuming the 90 days horizon Pimco Stocksplus Long is expected to generate 0.91 times more return on investment than Stocksplus Total. However, Pimco Stocksplus Long is 1.1 times less risky than Stocksplus Total. It trades about -0.11 of its potential returns per unit of risk. Stocksplus Total Return is currently generating about -0.15 per unit of risk. If you would invest 1,788 in Pimco Stocksplus Long on September 26, 2024 and sell it today you would lose (56.00) from holding Pimco Stocksplus Long or give up 3.13% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 95.45% |
Values | Daily Returns |
Pimco Stocksplus Long vs. Stocksplus Total Return
Performance |
Timeline |
Pimco Stocksplus Long |
Stocksplus Total Return |
Pimco Stocksplus and Stocksplus Total Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pimco Stocksplus and Stocksplus Total
The main advantage of trading using opposite Pimco Stocksplus and Stocksplus Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Stocksplus position performs unexpectedly, Stocksplus Total 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 Stocksplus Total will offset losses from the drop in Stocksplus Total's long position.Pimco Stocksplus vs. American Beacon Global | Pimco Stocksplus vs. Pimco Small Cap | Pimco Stocksplus vs. Pimco International Stocksplus | Pimco Stocksplus vs. Guggenheim Strategic Opportunities |
Stocksplus Total vs. Pimco Small Cap | Stocksplus Total vs. Pimco International Stocksplus | Stocksplus Total vs. Fundamental Indexplus Tr | Stocksplus Total vs. Pimco Stocksplus Long |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |