Correlation Between Australian REIT and PIMCO Global
Can any of the company-specific risk be diversified away by investing in both Australian REIT 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 Australian REIT and PIMCO Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Australian REIT Income and PIMCO Global Incme, you can compare the effects of market volatilities on Australian REIT 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 Australian REIT with a short position of PIMCO Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Australian REIT and PIMCO Global.
Diversification Opportunities for Australian REIT and PIMCO Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Australian and PIMCO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Australian REIT Income and PIMCO Global Incme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PIMCO Global Incme and Australian REIT 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 Australian REIT Income 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 Incme has no effect on the direction of Australian REIT i.e., Australian REIT and PIMCO Global go up and down completely randomly.
Pair Corralation between Australian REIT and PIMCO Global
If you would invest 667.00 in PIMCO Global Incme on September 12, 2024 and sell it today you would earn a total of 79.00 from holding PIMCO Global Incme or generate 11.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Australian REIT Income vs. PIMCO Global Incme
Performance |
| Timeline |
| Australian REIT Income |
| PIMCO Global Incme |
Australian REIT and PIMCO Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Australian REIT and PIMCO Global
The main advantage of trading using opposite Australian REIT and PIMCO Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Australian REIT 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.| Australian REIT vs. Melcor Real Estate | Australian REIT vs. Dream Impact Trust | Australian REIT vs. Blue Ribbon Income | Australian REIT vs. Canadian High Income |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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