Correlation Between CI Enhanced and PIMCO Global
Can any of the company-specific risk be diversified away by investing in both CI Enhanced 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 CI Enhanced and PIMCO Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CI Enhanced Short and PIMCO Global Short, you can compare the effects of market volatilities on CI Enhanced 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 CI Enhanced with a short position of PIMCO Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Enhanced and PIMCO Global.
Diversification Opportunities for CI Enhanced and PIMCO Global
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FSB and PIMCO is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding CI Enhanced Short and PIMCO Global Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PIMCO Global Short and CI Enhanced 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 CI Enhanced Short 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 Short has no effect on the direction of CI Enhanced i.e., CI Enhanced and PIMCO Global go up and down completely randomly.
Pair Corralation between CI Enhanced and PIMCO Global
Assuming the 90 days trading horizon CI Enhanced Short is expected to generate 1.28 times more return on investment than PIMCO Global. However, CI Enhanced is 1.28 times more volatile than PIMCO Global Short. It trades about 0.17 of its potential returns per unit of risk. PIMCO Global Short is currently generating about 0.16 per unit of risk. If you would invest 880.00 in CI Enhanced Short on August 26, 2024 and sell it today you would earn a total of 86.00 from holding CI Enhanced Short or generate 9.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI Enhanced Short vs. PIMCO Global Short
Performance |
| Timeline |
| CI Enhanced Short |
| PIMCO Global Short |
CI Enhanced and PIMCO Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Enhanced and PIMCO Global
The main advantage of trading using opposite CI Enhanced and PIMCO Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Enhanced 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.| CI Enhanced vs. Franklin Global Aggregate | CI Enhanced vs. CI Enhanced Government | CI Enhanced vs. CIBC Core Plus | CI Enhanced vs. Mackenzie Core Plus |
| PIMCO Global vs. Franklin Global Aggregate | PIMCO Global vs. CI Enhanced Government | PIMCO Global vs. CIBC Core Plus | PIMCO Global vs. Mackenzie Core Plus |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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