Correlation Between Pimco Foreign and Sa Global
Can any of the company-specific risk be diversified away by investing in both Pimco Foreign and Sa Global 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 Foreign and Sa Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Foreign Bond and Sa Global Fixed, you can compare the effects of market volatilities on Pimco Foreign and Sa Global 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 Foreign with a short position of Sa Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Foreign and Sa Global.
Diversification Opportunities for Pimco Foreign and Sa Global
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pimco and SAXIX is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Foreign Bond and Sa Global Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sa Global Fixed and Pimco Foreign 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 Foreign Bond are associated (or correlated) with Sa Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sa Global Fixed has no effect on the direction of Pimco Foreign i.e., Pimco Foreign and Sa Global go up and down completely randomly.
Pair Corralation between Pimco Foreign and Sa Global
Assuming the 90 days horizon Pimco Foreign Bond is expected to generate 2.4 times more return on investment than Sa Global. However, Pimco Foreign is 2.4 times more volatile than Sa Global Fixed. It trades about 0.13 of its potential returns per unit of risk. Sa Global Fixed is currently generating about 0.25 per unit of risk. If you would invest 908.00 in Pimco Foreign Bond on September 12, 2024 and sell it today you would earn a total of 91.00 from holding Pimco Foreign Bond or generate 10.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Foreign Bond vs. Sa Global Fixed
Performance |
| Timeline |
| Pimco Foreign Bond |
| Sa Global Fixed |
Pimco Foreign and Sa Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Foreign and Sa Global
The main advantage of trading using opposite Pimco Foreign and Sa Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Foreign position performs unexpectedly, Sa Global 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 Sa Global will offset losses from the drop in Sa Global's long position.| Pimco Foreign vs. Foreign Bond Fund | Pimco Foreign vs. Emerging Markets Bond | Pimco Foreign vs. High Yield Fund | Pimco Foreign vs. Low Duration Fund |
| Sa Global vs. Jhancock Disciplined Value | Sa Global vs. Upright Assets Allocation | Sa Global vs. Aqr Large Cap | Sa Global vs. Old Westbury Large |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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