Correlation Between Pimco Flexible and Pimco Funds
Can any of the company-specific risk be diversified away by investing in both Pimco Flexible and Pimco Funds 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 Flexible and Pimco Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Flexible Credit and Pimco Funds , you can compare the effects of market volatilities on Pimco Flexible and Pimco Funds 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 Flexible with a short position of Pimco Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Flexible and Pimco Funds.
Diversification Opportunities for Pimco Flexible and Pimco Funds
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pimco and Pimco is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Flexible Credit and Pimco Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Funds and Pimco Flexible 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 Flexible Credit are associated (or correlated) with Pimco Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Funds has no effect on the direction of Pimco Flexible i.e., Pimco Flexible and Pimco Funds go up and down completely randomly.
Pair Corralation between Pimco Flexible and Pimco Funds
Assuming the 90 days horizon Pimco Flexible Credit is expected to generate 0.39 times more return on investment than Pimco Funds. However, Pimco Flexible Credit is 2.58 times less risky than Pimco Funds. It trades about 0.15 of its potential returns per unit of risk. Pimco Funds is currently generating about 0.04 per unit of risk. If you would invest 577.00 in Pimco Flexible Credit on September 12, 2024 and sell it today you would earn a total of 142.00 from holding Pimco Flexible Credit or generate 24.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Pimco Flexible Credit vs. Pimco Funds
Performance |
| Timeline |
| Pimco Flexible Credit |
| Pimco Funds |
Pimco Flexible and Pimco Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Flexible and Pimco Funds
The main advantage of trading using opposite Pimco Flexible and Pimco Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Flexible position performs unexpectedly, Pimco Funds 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 Funds will offset losses from the drop in Pimco Funds' long position.| Pimco Flexible vs. Precious Metals And | Pimco Flexible vs. Vy Goldman Sachs | Pimco Flexible vs. Europac Gold Fund | Pimco Flexible vs. Franklin Gold Precious |
| Pimco Funds vs. Americafirst Large Cap | Pimco Funds vs. Fidelity Series 1000 | Pimco Funds vs. Qs Large Cap | Pimco Funds vs. Qs Large Cap |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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