Correlation Between BlackRock Credit and Pimco Global
Can any of the company-specific risk be diversified away by investing in both BlackRock Credit 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 BlackRock Credit and Pimco Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BlackRock Credit Allocation and Pimco Global Stocksplus, you can compare the effects of market volatilities on BlackRock Credit 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 BlackRock Credit with a short position of Pimco Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlackRock Credit and Pimco Global.
Diversification Opportunities for BlackRock Credit and Pimco Global
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BlackRock and Pimco is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock Credit Allocation and Pimco Global Stocksplus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Global Stocksplus and BlackRock Credit 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 BlackRock Credit Allocation 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 Stocksplus has no effect on the direction of BlackRock Credit i.e., BlackRock Credit and Pimco Global go up and down completely randomly.
Pair Corralation between BlackRock Credit and Pimco Global
Considering the 90-day investment horizon BlackRock Credit is expected to generate 1.47 times less return on investment than Pimco Global. But when comparing it to its historical volatility, BlackRock Credit Allocation is 1.54 times less risky than Pimco Global. It trades about 0.07 of its potential returns per unit of risk. Pimco Global Stocksplus is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 589.00 in Pimco Global Stocksplus on August 28, 2024 and sell it today you would earn a total of 217.00 from holding Pimco Global Stocksplus or generate 36.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BlackRock Credit Allocation vs. Pimco Global Stocksplus
Performance |
| Timeline |
| BlackRock Credit All |
| Pimco Global Stocksplus |
BlackRock Credit and Pimco Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BlackRock Credit and Pimco Global
The main advantage of trading using opposite BlackRock Credit and Pimco Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlackRock Credit 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.| BlackRock Credit vs. Pimco Corporate Income | BlackRock Credit vs. Pimco Income Strategy | BlackRock Credit vs. Pcm Fund | BlackRock Credit vs. Pimco High Income |
| Pimco Global vs. Pimco Income Strategy | Pimco Global vs. Pimco Corporate Income | Pimco Global vs. Pimco Corporate Income | Pimco Global vs. Pimco Income Strategy |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |