Correlation Between Pimco Funds and Pimco Flexible
Can any of the company-specific risk be diversified away by investing in both Pimco Funds and Pimco Flexible 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 Funds and Pimco Flexible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Funds and Pimco Flexible Credit, you can compare the effects of market volatilities on Pimco Funds and Pimco Flexible 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 Funds with a short position of Pimco Flexible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Funds and Pimco Flexible.
Diversification Opportunities for Pimco Funds and Pimco Flexible
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pimco and Pimco is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Funds and Pimco Flexible Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Flexible Credit and Pimco Funds 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 Funds are associated (or correlated) with Pimco Flexible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Flexible Credit has no effect on the direction of Pimco Funds i.e., Pimco Funds and Pimco Flexible go up and down completely randomly.
Pair Corralation between Pimco Funds and Pimco Flexible
If you would invest 100.00 in Pimco Funds on September 5, 2024 and sell it today you would earn a total of 0.00 from holding Pimco Funds or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Pimco Funds vs. Pimco Flexible Credit
Performance |
| Timeline |
| Pimco Funds |
| Pimco Flexible Credit |
Pimco Funds and Pimco Flexible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Funds and Pimco Flexible
The main advantage of trading using opposite Pimco Funds and Pimco Flexible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Funds position performs unexpectedly, Pimco Flexible 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 Flexible will offset losses from the drop in Pimco Flexible's long position.| Pimco Funds vs. Vanguard Financials Index | Pimco Funds vs. Fidelity Advisor Financial | Pimco Funds vs. Goldman Sachs Financial | Pimco Funds vs. Prudential Jennison Financial |
| Pimco Flexible vs. Pace High Yield | Pimco Flexible vs. Pioneer High Yield | Pimco Flexible vs. American Century High | Pimco Flexible vs. Msift High Yield |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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