Correlation Between Barings Active and Pimco Income
Can any of the company-specific risk be diversified away by investing in both Barings Active and Pimco Income 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 Barings Active and Pimco Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings Active Short and Pimco Income Fund, you can compare the effects of market volatilities on Barings Active and Pimco Income 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 Barings Active with a short position of Pimco Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Active and Pimco Income.
Diversification Opportunities for Barings Active and Pimco Income
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Barings and Pimco is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Barings Active Short and Pimco Income Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Income and Barings Active 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 Barings Active Short are associated (or correlated) with Pimco Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Income has no effect on the direction of Barings Active i.e., Barings Active and Pimco Income go up and down completely randomly.
Pair Corralation between Barings Active and Pimco Income
Assuming the 90 days horizon Barings Active Short is expected to generate 0.52 times more return on investment than Pimco Income. However, Barings Active Short is 1.94 times less risky than Pimco Income. It trades about 0.17 of its potential returns per unit of risk. Pimco Income Fund is currently generating about 0.08 per unit of risk. If you would invest 811.00 in Barings Active Short on September 14, 2024 and sell it today you would earn a total of 115.00 from holding Barings Active Short or generate 14.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Active Short vs. Pimco Income Fund
Performance |
| Timeline |
| Barings Active Short |
| Pimco Income |
Barings Active and Pimco Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Active and Pimco Income
The main advantage of trading using opposite Barings Active and Pimco Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Active position performs unexpectedly, Pimco Income 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 Income will offset losses from the drop in Pimco Income's long position.| Barings Active vs. Champlain Small | Barings Active vs. Franklin Small Cap | Barings Active vs. Touchstone Small Cap | Barings Active vs. Df Dent Small |
| Pimco Income vs. Barings Active Short | Pimco Income vs. Touchstone Ultra Short | Pimco Income vs. Angel Oak Ultrashort | Pimco Income vs. Aqr Long Short Equity |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |