Correlation Between PIMCO Enhanced and Global X
Can any of the company-specific risk be diversified away by investing in both PIMCO Enhanced and Global X 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 PIMCO Enhanced and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PIMCO Enhanced Short and Global X Funds, you can compare the effects of market volatilities on PIMCO Enhanced and Global X 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 PIMCO Enhanced with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of PIMCO Enhanced and Global X.
Diversification Opportunities for PIMCO Enhanced and Global X
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PIMCO and Global is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding PIMCO Enhanced Short and Global X Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Funds and PIMCO 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 PIMCO Enhanced Short are associated (or correlated) with Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Funds has no effect on the direction of PIMCO Enhanced i.e., PIMCO Enhanced and Global X go up and down completely randomly.
Pair Corralation between PIMCO Enhanced and Global X
Given the investment horizon of 90 days PIMCO Enhanced is expected to generate 6.25 times less return on investment than Global X. But when comparing it to its historical volatility, PIMCO Enhanced Short is 29.96 times less risky than Global X. It trades about 0.71 of its potential returns per unit of risk. Global X Funds is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 2,454 in Global X Funds on October 20, 2024 and sell it today you would earn a total of 1,452 from holding Global X Funds or generate 59.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 68.48% |
| Values | Daily Returns |
PIMCO Enhanced Short vs. Global X Funds
Performance |
| Timeline |
| PIMCO Enhanced Short |
| Global X Funds |
PIMCO Enhanced and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PIMCO Enhanced and Global X
The main advantage of trading using opposite PIMCO Enhanced and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PIMCO Enhanced position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| PIMCO Enhanced vs. Valued Advisers Trust | PIMCO Enhanced vs. Columbia Diversified Fixed | PIMCO Enhanced vs. Principal Exchange Traded Funds | PIMCO Enhanced vs. Doubleline Etf Trust |
| Global X vs. First Trust Exchange Traded | Global X vs. Ultimus Managers Trust | Global X vs. Horizon Kinetics Medical | Global X vs. Harbor Health Care |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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