Correlation Between Picton Mahoney and PIMCO Global
Can any of the company-specific risk be diversified away by investing in both Picton Mahoney and PIMCO Global 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 Picton Mahoney and PIMCO Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Picton Mahoney Fortified and PIMCO Global Short, you can compare the effects of market volatilities on Picton Mahoney and PIMCO Global 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 Picton Mahoney with a short position of PIMCO Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Picton Mahoney and PIMCO Global.
Diversification Opportunities for Picton Mahoney and PIMCO Global
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Picton and PIMCO is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Picton Mahoney Fortified and PIMCO Global Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PIMCO Global Short and Picton Mahoney 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 Picton Mahoney Fortified are associated (or correlated) with PIMCO Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PIMCO Global Short has no effect on the direction of Picton Mahoney i.e., Picton Mahoney and PIMCO Global go up and down completely randomly.
Pair Corralation between Picton Mahoney and PIMCO Global
Assuming the 90 days trading horizon Picton Mahoney Fortified is expected to generate 1.75 times more return on investment than PIMCO Global. However, Picton Mahoney is 1.75 times more volatile than PIMCO Global Short. It trades about 0.12 of its potential returns per unit of risk. PIMCO Global Short is currently generating about 0.12 per unit of risk. If you would invest 957.00 in Picton Mahoney Fortified on September 3, 2024 and sell it today you would earn a total of 43.00 from holding Picton Mahoney Fortified or generate 4.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Picton Mahoney Fortified vs. PIMCO Global Short
Performance |
| Timeline |
| Picton Mahoney Fortified |
| PIMCO Global Short |
Picton Mahoney and PIMCO Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Picton Mahoney and PIMCO Global
The main advantage of trading using opposite Picton Mahoney and PIMCO Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Picton Mahoney position performs unexpectedly, PIMCO Global 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 Global will offset losses from the drop in PIMCO Global's long position.| Picton Mahoney vs. First Asset Energy | Picton Mahoney vs. First Asset Tech | Picton Mahoney vs. Harvest Equal Weight | Picton Mahoney vs. CI Canada Lifeco |
| PIMCO Global vs. Mackenzie Core Plus | PIMCO Global vs. Mackenzie Floating Rate | PIMCO Global vs. Mackenzie Unconstrained Bond | PIMCO Global vs. Mackenzie Canadian Short |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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