Correlation Between Pimco Floating and Short Term
Can any of the company-specific risk be diversified away by investing in both Pimco Floating and Short 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 Short 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 Short Term Fund A, you can compare the effects of market volatilities on Pimco Floating and Short 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 Short Term. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Floating and Short Term.
Diversification Opportunities for Pimco Floating and Short Term
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pimco and Short is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Floating Income and Short Term Fund A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Short Term Fund 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 Short Term. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Short Term Fund has no effect on the direction of Pimco Floating i.e., Pimco Floating and Short Term go up and down completely randomly.
Pair Corralation between Pimco Floating and Short Term
If you would invest 802.00 in Pimco Floating Income on November 9, 2024 and sell it today you would earn a total of 8.00 from holding Pimco Floating Income or generate 1.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Floating Income vs. Short Term Fund A
Performance |
| Timeline |
| Pimco Floating Income |
| Short Term Fund |
Pimco Floating and Short Term Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Floating and Short Term
The main advantage of trading using opposite Pimco Floating and Short Term positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Floating position performs unexpectedly, Short 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 Short Term will offset losses from the drop in Short 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 |
| Short Term vs. Morningstar Municipal Bond | Short Term vs. Fidelity California Municipal | Short Term vs. Franklin Adjustable Government | Short Term vs. Old Westbury Municipal |
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 Stocks Directory module to find actively traded stocks across global markets.
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