Correlation Between Pimco Fundamental and Pimco Senior
Can any of the company-specific risk be diversified away by investing in both Pimco Fundamental and Pimco Senior 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 Fundamental and Pimco Senior into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Fundamental Advantage and Pimco Senior Floating, you can compare the effects of market volatilities on Pimco Fundamental and Pimco Senior 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 Fundamental with a short position of Pimco Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Fundamental and Pimco Senior.
Diversification Opportunities for Pimco Fundamental and Pimco Senior
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pimco and Pimco is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Fundamental Advantage and Pimco Senior Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Senior Floating and Pimco Fundamental 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 Fundamental Advantage are associated (or correlated) with Pimco Senior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Senior Floating has no effect on the direction of Pimco Fundamental i.e., Pimco Fundamental and Pimco Senior go up and down completely randomly.
Pair Corralation between Pimco Fundamental and Pimco Senior
Assuming the 90 days horizon Pimco Fundamental Advantage is expected to under-perform the Pimco Senior. In addition to that, Pimco Fundamental is 11.28 times more volatile than Pimco Senior Floating. It trades about -0.12 of its total potential returns per unit of risk. Pimco Senior Floating is currently generating about 0.3 per unit of volatility. If you would invest 914.00 in Pimco Senior Floating on September 13, 2024 and sell it today you would earn a total of 3.00 from holding Pimco Senior Floating or generate 0.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Fundamental Advantage vs. Pimco Senior Floating
Performance |
| Timeline |
| Pimco Fundamental |
| Pimco Senior Floating |
Pimco Fundamental and Pimco Senior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Fundamental and Pimco Senior
The main advantage of trading using opposite Pimco Fundamental and Pimco Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Fundamental position performs unexpectedly, Pimco Senior 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 Senior will offset losses from the drop in Pimco Senior's long position.| Pimco Fundamental vs. Dodge Cox Stock | Pimco Fundamental vs. T Rowe Price | Pimco Fundamental vs. Alternative Asset Allocation | Pimco Fundamental vs. Qs Large Cap |
| Pimco Senior vs. Us Strategic Equity | Pimco Senior vs. Cutler Equity | Pimco Senior vs. Calamos Global Equity | Pimco Senior vs. Sarofim Equity |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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