Correlation Between Barings Global and Pimco Global
Can any of the company-specific risk be diversified away by investing in both Barings Global 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 Barings Global and Pimco Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings Global Floating and Pimco Global Multi Asset, you can compare the effects of market volatilities on Barings Global 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 Barings Global with a short position of Pimco Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Global and Pimco Global.
Diversification Opportunities for Barings Global and Pimco Global
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Barings and Pimco is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Barings Global Floating 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 Barings Global 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 Global Floating 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 Barings Global i.e., Barings Global and Pimco Global go up and down completely randomly.
Pair Corralation between Barings Global and Pimco Global
Assuming the 90 days horizon Barings Global Floating is expected to under-perform the Pimco Global. But the mutual fund apears to be less risky and, when comparing its historical volatility, Barings Global Floating is 4.82 times less risky than Pimco Global. The mutual fund trades about -0.14 of its potential returns per unit of risk. The Pimco Global Multi Asset is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,479 in Pimco Global Multi Asset on December 4, 2024 and sell it today you would earn a total of 20.00 from holding Pimco Global Multi Asset or generate 1.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Global Floating vs. Pimco Global Multi Asset
Performance |
| Timeline |
| Barings Global Floating |
| Pimco Global Multi |
Barings Global and Pimco Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Global and Pimco Global
The main advantage of trading using opposite Barings Global and Pimco Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Global 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.| Barings Global vs. Schwab Treasury Inflation | Barings Global vs. Fidelity Sai Inflationfocused | Barings Global vs. Ab Bond Inflation | Barings Global vs. Lord Abbett Inflation |
| Pimco Global vs. Bbh Intermediate Municipal | Pimco Global vs. Alpine Ultra Short | Pimco Global vs. John Hancock Government | Pimco Global vs. Vanguard Intermediate Term Government |
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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