Correlation Between Cboe UK and PIMCO Sterling
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By analyzing existing cross correlation between Cboe UK Consumer and PIMCO Sterling Short, you can compare the effects of market volatilities on Cboe UK and PIMCO Sterling 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 Cboe UK with a short position of PIMCO Sterling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and PIMCO Sterling.
Diversification Opportunities for Cboe UK and PIMCO Sterling
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cboe and PIMCO is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and PIMCO Sterling Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PIMCO Sterling Short and Cboe UK 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 Cboe UK Consumer are associated (or correlated) with PIMCO Sterling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PIMCO Sterling Short has no effect on the direction of Cboe UK i.e., Cboe UK and PIMCO Sterling go up and down completely randomly.
Pair Corralation between Cboe UK and PIMCO Sterling
Assuming the 90 days trading horizon Cboe UK Consumer is expected to generate 29.38 times more return on investment than PIMCO Sterling. However, Cboe UK is 29.38 times more volatile than PIMCO Sterling Short. It trades about 0.07 of its potential returns per unit of risk. PIMCO Sterling Short is currently generating about 0.64 per unit of risk. If you would invest 2,575,620 in Cboe UK Consumer on September 2, 2024 and sell it today you would earn a total of 684,682 from holding Cboe UK Consumer or generate 26.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.95% |
| Values | Daily Returns |
Cboe UK Consumer vs. PIMCO Sterling Short
Performance |
| Timeline |
Cboe UK and PIMCO Sterling Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
PIMCO Sterling Short
Pair trading matchups for PIMCO Sterling
Pair Trading with Cboe UK and PIMCO Sterling
The main advantage of trading using opposite Cboe UK and PIMCO Sterling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK position performs unexpectedly, PIMCO Sterling 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 Sterling will offset losses from the drop in PIMCO Sterling's long position.| Cboe UK vs. Check Point Software | Cboe UK vs. Evolution Gaming Group | Cboe UK vs. Beeks Trading | Cboe UK vs. Hansa Investment |
| PIMCO Sterling vs. PIMCO Dollar Short | PIMCO Sterling vs. PIMCO Low Duration | PIMCO Sterling vs. PIMCO ETFs plc | PIMCO Sterling vs. PIMCO Short Term High |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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