Correlation Between Blue Current and Pimco Global
Can any of the company-specific risk be diversified away by investing in both Blue Current and Pimco 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 Blue Current and Pimco Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blue Current Global and Pimco Global Multi Asset, you can compare the effects of market volatilities on Blue Current and Pimco 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 Blue Current with a short position of Pimco Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Current and Pimco Global.
Diversification Opportunities for Blue Current and Pimco Global
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Blue and Pimco is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Blue Current Global and Pimco Global Multi Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Global Multi and Blue Current 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 Blue Current Global are associated (or correlated) with Pimco Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Global Multi has no effect on the direction of Blue Current i.e., Blue Current and Pimco Global go up and down completely randomly.
Pair Corralation between Blue Current and Pimco Global
Assuming the 90 days horizon Blue Current Global is expected to generate 1.46 times more return on investment than Pimco Global. However, Blue Current is 1.46 times more volatile than Pimco Global Multi Asset. It trades about 0.19 of its potential returns per unit of risk. Pimco Global Multi Asset is currently generating about 0.24 per unit of risk. If you would invest 1,596 in Blue Current Global on September 3, 2024 and sell it today you would earn a total of 33.00 from holding Blue Current Global or generate 2.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blue Current Global vs. Pimco Global Multi Asset
Performance |
| Timeline |
| Blue Current Global |
| Pimco Global Multi |
Blue Current and Pimco Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Current and Pimco Global
The main advantage of trading using opposite Blue Current and Pimco Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Current position performs unexpectedly, Pimco 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 Pimco Global will offset losses from the drop in Pimco Global's long position.| Blue Current vs. Touchstone Large Cap | Blue Current vs. Vanguard Windsor Fund | Blue Current vs. Qs Large Cap | Blue Current vs. Siit Large Cap |
| Pimco Global vs. Scharf Global Opportunity | Pimco Global vs. Abr 7525 Volatility | Pimco Global vs. Bbh Intermediate Municipal | Pimco Global vs. T Rowe Price |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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