Correlation Between VanEck Intermediate and PIMCO ETF
Can any of the company-specific risk be diversified away by investing in both VanEck Intermediate and PIMCO ETF 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 VanEck Intermediate and PIMCO ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck Intermediate Muni and PIMCO ETF Trust, you can compare the effects of market volatilities on VanEck Intermediate and PIMCO ETF 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 VanEck Intermediate with a short position of PIMCO ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Intermediate and PIMCO ETF.
Diversification Opportunities for VanEck Intermediate and PIMCO ETF
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between VanEck and PIMCO is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Intermediate Muni and PIMCO ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PIMCO ETF Trust and VanEck Intermediate 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 VanEck Intermediate Muni are associated (or correlated) with PIMCO ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PIMCO ETF Trust has no effect on the direction of VanEck Intermediate i.e., VanEck Intermediate and PIMCO ETF go up and down completely randomly.
Pair Corralation between VanEck Intermediate and PIMCO ETF
Considering the 90-day investment horizon VanEck Intermediate is expected to generate 44.0 times less return on investment than PIMCO ETF. But when comparing it to its historical volatility, VanEck Intermediate Muni is 1.24 times less risky than PIMCO ETF. It trades about 0.0 of its potential returns per unit of risk. PIMCO ETF Trust is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 4,521 in PIMCO ETF Trust on November 5, 2024 and sell it today you would earn a total of 11.00 from holding PIMCO ETF Trust or generate 0.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
VanEck Intermediate Muni vs. PIMCO ETF Trust
Performance |
| Timeline |
| VanEck Intermediate Muni |
| PIMCO ETF Trust |
VanEck Intermediate and PIMCO ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck Intermediate and PIMCO ETF
The main advantage of trading using opposite VanEck Intermediate and PIMCO ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Intermediate position performs unexpectedly, PIMCO ETF 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 ETF will offset losses from the drop in PIMCO ETF's long position.| VanEck Intermediate vs. VanEck Long Muni | VanEck Intermediate vs. VanEck Short Muni | VanEck Intermediate vs. SPDR Nuveen Bloomberg | VanEck Intermediate vs. Invesco National AMT Free |
| PIMCO ETF vs. BlackRock Intermediate Muni | PIMCO ETF vs. IQ MacKay Municipal | PIMCO ETF vs. PIMCO Short Term | PIMCO ETF vs. iShares Short Maturity |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |