Correlation Between Pimco Income and Standpoint Multi-asset
Can any of the company-specific risk be diversified away by investing in both Pimco Income and Standpoint Multi-asset 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 Standpoint Multi-asset 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 Standpoint Multi Asset, you can compare the effects of market volatilities on Pimco Income and Standpoint Multi-asset 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 Standpoint Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Income and Standpoint Multi-asset.
Diversification Opportunities for Pimco Income and Standpoint Multi-asset
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pimco and Standpoint is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Income Strategy and Standpoint Multi Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Standpoint Multi Asset 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 Standpoint Multi-asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Standpoint Multi Asset has no effect on the direction of Pimco Income i.e., Pimco Income and Standpoint Multi-asset go up and down completely randomly.
Pair Corralation between Pimco Income and Standpoint Multi-asset
Considering the 90-day investment horizon Pimco Income Strategy is expected to generate 0.59 times more return on investment than Standpoint Multi-asset. However, Pimco Income Strategy is 1.69 times less risky than Standpoint Multi-asset. It trades about 0.14 of its potential returns per unit of risk. Standpoint Multi Asset is currently generating about 0.01 per unit of risk. If you would invest 693.00 in Pimco Income Strategy on September 1, 2024 and sell it today you would earn a total of 59.00 from holding Pimco Income Strategy or generate 8.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Pimco Income Strategy vs. Standpoint Multi Asset
Performance |
| Timeline |
| Pimco Income Strategy |
| Standpoint Multi Asset |
Pimco Income and Standpoint Multi-asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Income and Standpoint Multi-asset
The main advantage of trading using opposite Pimco Income and Standpoint Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Income position performs unexpectedly, Standpoint Multi-asset 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 Standpoint Multi-asset will offset losses from the drop in Standpoint Multi-asset's long position.| Pimco Income vs. Pcm Fund | Pimco Income vs. Pimco Corporate Income | Pimco Income vs. Pimco Global Stocksplus | Pimco Income vs. Pimco High Income |
| Standpoint Multi-asset vs. Standpoint Multi Asset | Standpoint Multi-asset vs. Mid Cap 15x Strategy | Standpoint Multi-asset vs. Thrivent High Yield | Standpoint Multi-asset vs. American High Income 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |