Correlation Between Pimco Credit and Pimco Credit
Can any of the company-specific risk be diversified away by investing in both Pimco Credit and Pimco Credit 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 Credit and Pimco Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Credit Absolute and Pimco Credit Absolute, you can compare the effects of market volatilities on Pimco Credit and Pimco Credit 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 Credit with a short position of Pimco Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Credit and Pimco Credit.
Diversification Opportunities for Pimco Credit and Pimco Credit
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Pimco and Pimco is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Credit Absolute and Pimco Credit Absolute in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Credit Absolute and Pimco Credit 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 Credit Absolute are associated (or correlated) with Pimco Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Credit Absolute has no effect on the direction of Pimco Credit i.e., Pimco Credit and Pimco Credit go up and down completely randomly.
Pair Corralation between Pimco Credit and Pimco Credit
Assuming the 90 days horizon Pimco Credit Absolute is expected to generate 0.91 times more return on investment than Pimco Credit. However, Pimco Credit Absolute is 1.1 times less risky than Pimco Credit. It trades about 0.27 of its potential returns per unit of risk. Pimco Credit Absolute is currently generating about 0.24 per unit of risk. If you would invest 960.00 in Pimco Credit Absolute on September 2, 2024 and sell it today you would earn a total of 18.00 from holding Pimco Credit Absolute or generate 1.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Credit Absolute vs. Pimco Credit Absolute
Performance |
| Timeline |
| Pimco Credit Absolute |
| Pimco Credit Absolute |
Pimco Credit and Pimco Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Credit and Pimco Credit
The main advantage of trading using opposite Pimco Credit and Pimco Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Credit position performs unexpectedly, Pimco Credit 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 Credit will offset losses from the drop in Pimco Credit's long position.| Pimco Credit vs. Pimco Rae Worldwide | Pimco Credit vs. Pimco Rae Worldwide | Pimco Credit vs. Pimco Rae Worldwide | Pimco Credit vs. Pimco Rae Worldwide |
| Pimco Credit vs. Pimco Rae Worldwide | Pimco Credit vs. Pimco Rae Worldwide | Pimco Credit vs. Pimco Rae Worldwide | Pimco Credit vs. Pimco Rae Worldwide |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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