Correlation Between Pimco Floating and Long-term
Can any of the company-specific risk be diversified away by investing in both Pimco Floating and Long-term 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 Floating and Long-term into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Floating Income and Long Term Government Fund, you can compare the effects of market volatilities on Pimco Floating and Long-term 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 Floating with a short position of Long-term. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Floating and Long-term.
Diversification Opportunities for Pimco Floating and Long-term
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Pimco and Long-term is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Floating Income and Long Term Government Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Long Term Government and Pimco Floating 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 Floating Income are associated (or correlated) with Long-term. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Long Term Government has no effect on the direction of Pimco Floating i.e., Pimco Floating and Long-term go up and down completely randomly.
Pair Corralation between Pimco Floating and Long-term
Assuming the 90 days horizon Pimco Floating Income is expected to generate 0.21 times more return on investment than Long-term. However, Pimco Floating Income is 4.81 times less risky than Long-term. It trades about 0.15 of its potential returns per unit of risk. Long Term Government Fund is currently generating about 0.0 per unit of risk. If you would invest 729.00 in Pimco Floating Income on September 1, 2024 and sell it today you would earn a total of 83.00 from holding Pimco Floating Income or generate 11.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Floating Income vs. Long Term Government Fund
Performance |
| Timeline |
| Pimco Floating Income |
| Long Term Government |
Pimco Floating and Long-term Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Floating and Long-term
The main advantage of trading using opposite Pimco Floating and Long-term positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Floating position performs unexpectedly, Long-term 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 Long-term will offset losses from the drop in Long-term's long position.| Pimco Floating vs. Short Term Fund A | Pimco Floating vs. Pimco Income Fund | Pimco Floating vs. Pimco Foreign Bond | Pimco Floating vs. All Asset Fund |
| Long-term vs. Pimco Global Multi Asset | Long-term vs. Us Global Investors | Long-term vs. Us Global Leaders | Long-term vs. Dreyfusstandish Global Fixed |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |