Correlation Between Aberdeen Income and Pimco Corporate
Can any of the company-specific risk be diversified away by investing in both Aberdeen Income and Pimco Corporate 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 Aberdeen Income and Pimco Corporate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aberdeen Income Credit and Pimco Corporate Income, you can compare the effects of market volatilities on Aberdeen Income and Pimco Corporate 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 Aberdeen Income with a short position of Pimco Corporate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aberdeen Income and Pimco Corporate.
Diversification Opportunities for Aberdeen Income and Pimco Corporate
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aberdeen and Pimco is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Aberdeen Income Credit and Pimco Corporate Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Corporate Income and Aberdeen Income 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 Aberdeen Income Credit are associated (or correlated) with Pimco Corporate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Corporate Income has no effect on the direction of Aberdeen Income i.e., Aberdeen Income and Pimco Corporate go up and down completely randomly.
Pair Corralation between Aberdeen Income and Pimco Corporate
Considering the 90-day investment horizon Aberdeen Income is expected to generate 1.22 times less return on investment than Pimco Corporate. But when comparing it to its historical volatility, Aberdeen Income Credit is 1.0 times less risky than Pimco Corporate. It trades about 0.07 of its potential returns per unit of risk. Pimco Corporate Income is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,149 in Pimco Corporate Income on August 31, 2024 and sell it today you would earn a total of 324.00 from holding Pimco Corporate Income or generate 28.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aberdeen Income Credit vs. Pimco Corporate Income
Performance |
| Timeline |
| Aberdeen Income Credit |
| Pimco Corporate Income |
Aberdeen Income and Pimco Corporate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aberdeen Income and Pimco Corporate
The main advantage of trading using opposite Aberdeen Income and Pimco Corporate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aberdeen Income position performs unexpectedly, Pimco Corporate 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 Corporate will offset losses from the drop in Pimco Corporate's long position.| Aberdeen Income vs. MFS Investment Grade | Aberdeen Income vs. Eaton Vance Municipal | Aberdeen Income vs. DTF Tax Free | Aberdeen Income vs. HUMANA INC |
| Pimco Corporate vs. Pimco Dynamic Income | Pimco Corporate vs. Guggenheim Strategic Opportunities | Pimco Corporate vs. Brookfield Real Assets | Pimco Corporate vs. Reaves Utility If |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |