Correlation Between Pimco Floating and Stocksplus
Can any of the company-specific risk be diversified away by investing in both Pimco Floating and Stocksplus 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 Stocksplus 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 Stocksplus Tr Short, you can compare the effects of market volatilities on Pimco Floating and Stocksplus 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 Stocksplus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Floating and Stocksplus.
Diversification Opportunities for Pimco Floating and Stocksplus
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pimco and Stocksplus is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Floating Income and Stocksplus Tr Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stocksplus Tr Short 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 Stocksplus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stocksplus Tr Short has no effect on the direction of Pimco Floating i.e., Pimco Floating and Stocksplus go up and down completely randomly.
Pair Corralation between Pimco Floating and Stocksplus
Assuming the 90 days horizon Pimco Floating Income is expected to generate 0.22 times more return on investment than Stocksplus. However, Pimco Floating Income is 4.57 times less risky than Stocksplus. It trades about 0.26 of its potential returns per unit of risk. Stocksplus Tr Short is currently generating about -0.28 per unit of risk. If you would invest 805.00 in Pimco Floating Income on September 1, 2024 and sell it today you would earn a total of 7.00 from holding Pimco Floating Income or generate 0.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Floating Income vs. Stocksplus Tr Short
Performance |
| Timeline |
| Pimco Floating Income |
| Stocksplus Tr Short |
Pimco Floating and Stocksplus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Floating and Stocksplus
The main advantage of trading using opposite Pimco Floating and Stocksplus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Floating position performs unexpectedly, Stocksplus 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 Stocksplus will offset losses from the drop in Stocksplus' 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 |
| Stocksplus vs. Jhancock Disciplined Value | Stocksplus vs. Americafirst Large Cap | Stocksplus vs. Touchstone Large Cap | Stocksplus vs. Transamerica Large Cap |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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