Correlation Between Pimco California and Money Market
Can any of the company-specific risk be diversified away by investing in both Pimco California and Money Market 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 California and Money Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco California Municipal and Money Market Obligations, you can compare the effects of market volatilities on Pimco California and Money Market 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 California with a short position of Money Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco California and Money Market.
Diversification Opportunities for Pimco California and Money Market
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pimco and Money is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Pimco California Municipal and Money Market Obligations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Money Market Obligations and Pimco California 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 California Municipal are associated (or correlated) with Money Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Money Market Obligations has no effect on the direction of Pimco California i.e., Pimco California and Money Market go up and down completely randomly.
Pair Corralation between Pimco California and Money Market
If you would invest 100.00 in Money Market Obligations on September 23, 2024 and sell it today you would earn a total of 0.00 from holding Money Market Obligations or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Pimco California Municipal vs. Money Market Obligations
Performance |
Timeline |
Pimco California Mun |
Money Market Obligations |
Pimco California and Money Market Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pimco California and Money Market
The main advantage of trading using opposite Pimco California and Money Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco California position performs unexpectedly, Money Market 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 Money Market will offset losses from the drop in Money Market's long position.Pimco California vs. Money Market Obligations | Pimco California vs. General Money Market | Pimco California vs. Elfun Government Money | Pimco California vs. Putnam Money Market |
Money Market vs. Franklin High Income | Money Market vs. Morningstar Aggressive Growth | Money Market vs. Ab Global Risk | Money Market vs. Artisan High Income |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |