Correlation Between CBH and Pimco Corporate
Can any of the company-specific risk be diversified away by investing in both CBH and Pimco Corporate 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 CBH and Pimco Corporate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CBH and Pimco Corporate Income, you can compare the effects of market volatilities on CBH and Pimco Corporate 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 CBH with a short position of Pimco Corporate. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBH and Pimco Corporate.
Diversification Opportunities for CBH and Pimco Corporate
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CBH and Pimco is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding CBH and Pimco Corporate Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Corporate Income and CBH 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 CBH are associated (or correlated) with Pimco Corporate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Corporate Income has no effect on the direction of CBH i.e., CBH and Pimco Corporate go up and down completely randomly.
Pair Corralation between CBH and Pimco Corporate
If you would invest 1,440 in Pimco Corporate Income on August 31, 2024 and sell it today you would earn a total of 30.00 from holding Pimco Corporate Income or generate 2.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 4.55% |
| Values | Daily Returns |
CBH vs. Pimco Corporate Income
Performance |
| Timeline |
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Pimco Corporate Income |
CBH and Pimco Corporate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBH and Pimco Corporate
The main advantage of trading using opposite CBH and Pimco Corporate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBH position performs unexpectedly, Pimco Corporate 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 Corporate will offset losses from the drop in Pimco Corporate's long position.| CBH vs. Eaton Vance National | CBH vs. Invesco High Income | CBH vs. Blackrock Muniholdings Ny | CBH vs. Nuveen California Select |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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