Correlation Between Pimco Income and CBH
Can any of the company-specific risk be diversified away by investing in both Pimco Income and CBH 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 Income and CBH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Income Strategy and CBH, you can compare the effects of market volatilities on Pimco Income and CBH 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 Income with a short position of CBH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Income and CBH.
Diversification Opportunities for Pimco Income and CBH
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pimco and CBH is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Income Strategy and CBH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBH and Pimco Income 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 Income Strategy are associated (or correlated) with CBH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBH has no effect on the direction of Pimco Income i.e., Pimco Income and CBH go up and down completely randomly.
Pair Corralation between Pimco Income and CBH
If you would invest 846.00 in Pimco Income Strategy on August 31, 2024 and sell it today you would earn a total of 4.00 from holding Pimco Income Strategy or generate 0.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Pimco Income Strategy vs. CBH
Performance |
| Timeline |
| Pimco Income Strategy |
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Pimco Income and CBH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Income and CBH
The main advantage of trading using opposite Pimco Income and CBH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Income position performs unexpectedly, CBH 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 CBH will offset losses from the drop in CBH's long position.| Pimco Income vs. PIMCO Access Income | Pimco Income vs. Pimco High Income | Pimco Income vs. Pimco Corporate Income | Pimco Income vs. Pimco Corporate Income |
| CBH vs. Eaton Vance National | CBH vs. Invesco High Income | CBH vs. Blackrock Muniholdings Ny | CBH vs. Nuveen California Select |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |