Correlation Between Pimco Floating and Pimco Preferred
Can any of the company-specific risk be diversified away by investing in both Pimco Floating and Pimco Preferred 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 Preferred 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 Preferred And, you can compare the effects of market volatilities on Pimco Floating and Pimco Preferred 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 Preferred. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Floating and Pimco Preferred.
Diversification Opportunities for Pimco Floating and Pimco Preferred
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pimco and Pimco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Floating Income and Pimco Preferred And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Preferred And 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 Preferred. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Preferred And has no effect on the direction of Pimco Floating i.e., Pimco Floating and Pimco Preferred go up and down completely randomly.
Pair Corralation between Pimco Floating and Pimco Preferred
If you would invest 859.00 in Pimco Preferred And on August 29, 2024 and sell it today you would earn a total of 71.00 from holding Pimco Preferred And or generate 8.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Pimco Floating Income vs. Pimco Preferred And
Performance |
| Timeline |
| Pimco Floating Income |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Pimco Preferred And |
Pimco Floating and Pimco Preferred Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Floating and Pimco Preferred
The main advantage of trading using opposite Pimco Floating and Pimco Preferred positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Floating position performs unexpectedly, Pimco Preferred 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 Preferred will offset losses from the drop in Pimco Preferred's long position.| Pimco Floating vs. Pimco Income Fund | Pimco Floating vs. Pimco Mortgage Opportunities | Pimco Floating vs. Short Term Fund Institutional | Pimco Floating vs. Pimco Foreign Bond |
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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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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