Correlation Between Pimco Corporate and Aberdeen Global
Can any of the company-specific risk be diversified away by investing in both Pimco Corporate and Aberdeen 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 Corporate and Aberdeen Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Corporate Income and Aberdeen Global Premier, you can compare the effects of market volatilities on Pimco Corporate and Aberdeen 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 Corporate with a short position of Aberdeen Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Corporate and Aberdeen Global.
Diversification Opportunities for Pimco Corporate and Aberdeen Global
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pimco and Aberdeen is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Corporate Income and Aberdeen Global Premier in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Global Premier and Pimco Corporate 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 Corporate Income are associated (or correlated) with Aberdeen Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Global Premier has no effect on the direction of Pimco Corporate i.e., Pimco Corporate and Aberdeen Global go up and down completely randomly.
Pair Corralation between Pimco Corporate and Aberdeen Global
Considering the 90-day investment horizon Pimco Corporate Income is expected to generate 0.18 times more return on investment than Aberdeen Global. However, Pimco Corporate Income is 5.66 times less risky than Aberdeen Global. It trades about 0.27 of its potential returns per unit of risk. Aberdeen Global Premier is currently generating about -0.05 per unit of risk. If you would invest 1,455 in Pimco Corporate Income on September 13, 2024 and sell it today you would earn a total of 16.00 from holding Pimco Corporate Income or generate 1.1% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Pimco Corporate Income vs. Aberdeen Global Premier
Performance |
Timeline |
Pimco Corporate Income |
Aberdeen Global Premier |
Pimco Corporate and Aberdeen Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pimco Corporate and Aberdeen Global
The main advantage of trading using opposite Pimco Corporate and Aberdeen Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Corporate position performs unexpectedly, Aberdeen 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 Aberdeen Global will offset losses from the drop in Aberdeen Global's long position.Pimco Corporate vs. Pimco Dynamic Income | Pimco Corporate vs. Guggenheim Strategic Opportunities | Pimco Corporate vs. Brookfield Real Assets | Pimco Corporate vs. Reaves Utility If |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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