Correlation Between Pimco Floating and Pimco Short
Can any of the company-specific risk be diversified away by investing in both Pimco Floating and Pimco Short 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 Pimco Short 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 Pimco Short Term Fund, you can compare the effects of market volatilities on Pimco Floating and Pimco Short 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 Pimco Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Floating and Pimco Short.
Diversification Opportunities for Pimco Floating and Pimco Short
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Pimco and Pimco is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Floating Income and Pimco Short Term Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Short Term 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 Pimco Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Short Term has no effect on the direction of Pimco Floating i.e., Pimco Floating and Pimco Short go up and down completely randomly.
Pair Corralation between Pimco Floating and Pimco Short
Assuming the 90 days horizon Pimco Floating Income is expected to generate 2.55 times more return on investment than Pimco Short. However, Pimco Floating is 2.55 times more volatile than Pimco Short Term Fund. It trades about 0.13 of its potential returns per unit of risk. Pimco Short Term Fund is currently generating about 0.1 per unit of risk. If you would invest 810.00 in Pimco Floating Income on September 12, 2024 and sell it today you would earn a total of 3.00 from holding Pimco Floating Income or generate 0.37% 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. Pimco Short Term Fund
Performance |
| Timeline |
| Pimco Floating Income |
| Pimco Short Term |
Pimco Floating and Pimco Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Floating and Pimco Short
The main advantage of trading using opposite Pimco Floating and Pimco Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Floating position performs unexpectedly, Pimco Short 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 Short will offset losses from the drop in Pimco Short'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 |
| Pimco Short vs. SCOR PK | Pimco Short vs. Morningstar Unconstrained Allocation | Pimco Short vs. Via Renewables | Pimco Short vs. Bondbloxx ETF Trust |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |