Correlation Between Pimco Dynamic and Aberdeen Income
Can any of the company-specific risk be diversified away by investing in both Pimco Dynamic and Aberdeen Income 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 Dynamic and Aberdeen Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Dynamic Income and Aberdeen Income Credit, you can compare the effects of market volatilities on Pimco Dynamic and Aberdeen Income 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 Dynamic with a short position of Aberdeen Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Dynamic and Aberdeen Income.
Diversification Opportunities for Pimco Dynamic and Aberdeen Income
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pimco and Aberdeen is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Dynamic Income and Aberdeen Income Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Income Credit and Pimco Dynamic 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 Dynamic Income are associated (or correlated) with Aberdeen Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Income Credit has no effect on the direction of Pimco Dynamic i.e., Pimco Dynamic and Aberdeen Income go up and down completely randomly.
Pair Corralation between Pimco Dynamic and Aberdeen Income
Considering the 90-day investment horizon Pimco Dynamic Income is expected to under-perform the Aberdeen Income. In addition to that, Pimco Dynamic is 1.51 times more volatile than Aberdeen Income Credit. It trades about -0.01 of its total potential returns per unit of risk. Aberdeen Income Credit is currently generating about 0.08 per unit of volatility. If you would invest 637.00 in Aberdeen Income Credit on August 26, 2024 and sell it today you would earn a total of 5.00 from holding Aberdeen Income Credit or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Dynamic Income vs. Aberdeen Income Credit
Performance |
| Timeline |
| Pimco Dynamic Income |
| Aberdeen Income Credit |
Pimco Dynamic and Aberdeen Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Dynamic and Aberdeen Income
The main advantage of trading using opposite Pimco Dynamic and Aberdeen Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Dynamic position performs unexpectedly, Aberdeen Income 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 Aberdeen Income will offset losses from the drop in Aberdeen Income's long position.| Pimco Dynamic vs. Pimco Corporate Income | Pimco Dynamic vs. Guggenheim Strategic Opportunities | Pimco Dynamic vs. Pimco Dynamic Income | Pimco Dynamic vs. Pimco High Income |
| Aberdeen Income vs. Pimco Dynamic Income | Aberdeen Income vs. Pimco Corporate Income | Aberdeen Income vs. Cornerstone Strategic Value | Aberdeen Income vs. Cornerstone Strategic Return |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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