Correlation Between Microsoft and PIMCO 15
Can any of the company-specific risk be diversified away by investing in both Microsoft and PIMCO 15 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 Microsoft and PIMCO 15 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microsoft and PIMCO 15 Year, you can compare the effects of market volatilities on Microsoft and PIMCO 15 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 Microsoft with a short position of PIMCO 15. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and PIMCO 15.
Diversification Opportunities for Microsoft and PIMCO 15
Modest diversification
The 3 months correlation between Microsoft and PIMCO is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and PIMCO 15 Year in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PIMCO 15 Year and Microsoft 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 Microsoft are associated (or correlated) with PIMCO 15. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PIMCO 15 Year has no effect on the direction of Microsoft i.e., Microsoft and PIMCO 15 go up and down completely randomly.
Pair Corralation between Microsoft and PIMCO 15
Given the investment horizon of 90 days Microsoft is expected to under-perform the PIMCO 15. In addition to that, Microsoft is 1.9 times more volatile than PIMCO 15 Year. It trades about -0.05 of its total potential returns per unit of risk. PIMCO 15 Year is currently generating about 0.03 per unit of volatility. If you would invest 5,467 in PIMCO 15 Year on August 27, 2024 and sell it today you would earn a total of 26.00 from holding PIMCO 15 Year or generate 0.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Microsoft vs. PIMCO 15 Year
Performance |
| Timeline |
| Microsoft |
| PIMCO 15 Year |
Microsoft and PIMCO 15 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and PIMCO 15
The main advantage of trading using opposite Microsoft and PIMCO 15 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, PIMCO 15 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 15 will offset losses from the drop in PIMCO 15's long position.| Microsoft vs. GigaCloud Technology Class | Microsoft vs. Arqit Quantum | Microsoft vs. Cemtrex | Microsoft vs. Paysafe |
| PIMCO 15 vs. VanEck JP Morgan | PIMCO 15 vs. Vanguard Extended Duration | PIMCO 15 vs. PIMCO 1 5 Year | PIMCO 15 vs. PIMCO Broad TIPS |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |