Correlation Between PIMCO Access and Highland Global
Can any of the company-specific risk be diversified away by investing in both PIMCO Access and Highland 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 PIMCO Access and Highland Global 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 Global Allocation, you can compare the effects of market volatilities on PIMCO Access and Highland 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 PIMCO Access with a short position of Highland Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of PIMCO Access and Highland Global.
Diversification Opportunities for PIMCO Access and Highland Global
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PIMCO and Highland is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding PIMCO Access Income and Highland Global Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highland Global Allo 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 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highland Global Allo has no effect on the direction of PIMCO Access i.e., PIMCO Access and Highland Global go up and down completely randomly.
Pair Corralation between PIMCO Access and Highland Global
Given the investment horizon of 90 days PIMCO Access Income is expected to generate 0.71 times more return on investment than Highland Global. However, PIMCO Access Income is 1.41 times less risky than Highland Global. It trades about 0.09 of its potential returns per unit of risk. Highland Global Allocation is currently generating about 0.02 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PIMCO Access Income vs. Highland Global Allocation
Performance |
| Timeline |
| PIMCO Access Income |
| Highland Global Allo |
PIMCO Access and Highland Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PIMCO Access and Highland Global
The main advantage of trading using opposite PIMCO Access and Highland Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PIMCO Access position performs unexpectedly, Highland 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 Highland Global will offset losses from the drop in Highland Global'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 Global vs. Neuberger Berman Next | Highland Global vs. Doubleline Yield Opportunities | Highland Global vs. Doubleline Income Solutions | Highland Global vs. Clough Global Ef |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |