Correlation Between Pimco Floating and New York
Can any of the company-specific risk be diversified away by investing in both Pimco Floating and New York 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 New York 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 New York Municipal, you can compare the effects of market volatilities on Pimco Floating and New York 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 New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Floating and New York.
Diversification Opportunities for Pimco Floating and New York
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pimco and New is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Floating Income and New York Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New York Municipal 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 New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New York Municipal has no effect on the direction of Pimco Floating i.e., Pimco Floating and New York go up and down completely randomly.
Pair Corralation between Pimco Floating and New York
Assuming the 90 days horizon Pimco Floating Income is expected to generate 0.82 times more return on investment than New York. However, Pimco Floating Income is 1.22 times less risky than New York. It trades about 0.16 of its potential returns per unit of risk. New York Municipal is currently generating about 0.09 per unit of risk. If you would invest 727.00 in Pimco Floating Income on September 2, 2024 and sell it today you would earn a total of 85.00 from holding Pimco Floating Income or generate 11.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Floating Income vs. New York Municipal
Performance |
| Timeline |
| Pimco Floating Income |
| New York Municipal |
Pimco Floating and New York Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Floating and New York
The main advantage of trading using opposite Pimco Floating and New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Floating position performs unexpectedly, New York 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 New York will offset losses from the drop in New York's long position.| Pimco Floating vs. T Rowe Price | Pimco Floating vs. Rbc Global Opportunities | Pimco Floating vs. T Rowe Price | Pimco Floating vs. Federated Global Allocation |
| New York vs. Pimco High Yield | New York vs. Ab New York | New York vs. Short Duration Municipal | New York vs. California Intermediate 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |