Correlation Between PIMCO Access and Highland Floating
Can any of the company-specific risk be diversified away by investing in both PIMCO Access and Highland Floating 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 Access and Highland Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PIMCO Access Income and Highland Floating Rate, you can compare the effects of market volatilities on PIMCO Access and Highland Floating 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 Access with a short position of Highland Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of PIMCO Access and Highland Floating.
Diversification Opportunities for PIMCO Access and Highland Floating
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between PIMCO and Highland is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding PIMCO Access Income and Highland Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highland Floating Rate and PIMCO Access 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 Access Income are associated (or correlated) with Highland Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highland Floating Rate has no effect on the direction of PIMCO Access i.e., PIMCO Access and Highland Floating go up and down completely randomly.
Pair Corralation between PIMCO Access and Highland Floating
Given the investment horizon of 90 days PIMCO Access Income is expected to generate 0.52 times more return on investment than Highland Floating. However, PIMCO Access Income is 1.92 times less risky than Highland Floating. It trades about 0.09 of its potential returns per unit of risk. Highland Floating Rate is currently generating about -0.04 per unit of risk. If you would invest 1,255 in PIMCO Access Income on August 28, 2024 and sell it today you would earn a total of 418.00 from holding PIMCO Access Income or generate 33.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PIMCO Access Income vs. Highland Floating Rate
Performance |
| Timeline |
| PIMCO Access Income |
| Highland Floating Rate |
PIMCO Access and Highland Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PIMCO Access and Highland Floating
The main advantage of trading using opposite PIMCO Access and Highland Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PIMCO Access position performs unexpectedly, Highland Floating 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 Highland Floating will offset losses from the drop in Highland Floating's long position.| PIMCO Access vs. Pimco Dynamic Income | PIMCO Access vs. Pimco Corporate Income | PIMCO Access vs. Doubleline Yield Opportunities | PIMCO Access vs. Cohen Steers Reit |
| Highland Floating vs. Neuberger Berman Next | Highland Floating vs. SRH Total Return | Highland Floating vs. Nuveen Municipal Credit | Highland Floating vs. Doubleline Income Solutions |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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