Correlation Between Pimco Capital and Stocksplus Fund
Can any of the company-specific risk be diversified away by investing in both Pimco Capital and Stocksplus Fund 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 Capital and Stocksplus Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Capital Sec and Stocksplus Fund Institutional, you can compare the effects of market volatilities on Pimco Capital and Stocksplus Fund 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 Capital with a short position of Stocksplus Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Capital and Stocksplus Fund.
Diversification Opportunities for Pimco Capital and Stocksplus Fund
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pimco and Stocksplus is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Capital Sec and Stocksplus Fund Institutional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stocksplus Fund Inst and Pimco Capital 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 Capital Sec are associated (or correlated) with Stocksplus Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stocksplus Fund Inst has no effect on the direction of Pimco Capital i.e., Pimco Capital and Stocksplus Fund go up and down completely randomly.
Pair Corralation between Pimco Capital and Stocksplus Fund
Assuming the 90 days horizon Pimco Capital is expected to generate 3.11 times less return on investment than Stocksplus Fund. But when comparing it to its historical volatility, Pimco Capital Sec is 2.04 times less risky than Stocksplus Fund. It trades about 0.07 of its potential returns per unit of risk. Stocksplus Fund Institutional is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 891.00 in Stocksplus Fund Institutional on August 30, 2024 and sell it today you would earn a total of 511.00 from holding Stocksplus Fund Institutional or generate 57.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Capital Sec vs. Stocksplus Fund Institutional
Performance |
| Timeline |
| Pimco Capital Sec |
| Stocksplus Fund Inst |
Pimco Capital and Stocksplus Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Capital and Stocksplus Fund
The main advantage of trading using opposite Pimco Capital and Stocksplus Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Capital position performs unexpectedly, Stocksplus Fund 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 Stocksplus Fund will offset losses from the drop in Stocksplus Fund's long position.| Pimco Capital vs. Nuveen Preferred Securities | Pimco Capital vs. Cohen Steers Preferd | Pimco Capital vs. Pimco Income Fund | Pimco Capital vs. Pimco Floating Income |
| Stocksplus Fund vs. Realestaterealreturn Strategy Fund | Stocksplus Fund vs. Long Term Government Fund | Stocksplus Fund vs. T Rowe Price | Stocksplus Fund vs. Blackrock Advantage Small |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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