Correlation Between Pimco Global and Barings Emerging
Can any of the company-specific risk be diversified away by investing in both Pimco Global and Barings Emerging 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 Global and Barings Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Global Multi Asset and Barings Emerging Markets, you can compare the effects of market volatilities on Pimco Global and Barings Emerging 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 Global with a short position of Barings Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Global and Barings Emerging.
Diversification Opportunities for Pimco Global and Barings Emerging
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pimco and Barings is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Global Multi Asset and Barings Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings Emerging Markets and Pimco Global 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 Global Multi Asset are associated (or correlated) with Barings Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings Emerging Markets has no effect on the direction of Pimco Global i.e., Pimco Global and Barings Emerging go up and down completely randomly.
Pair Corralation between Pimco Global and Barings Emerging
Assuming the 90 days horizon Pimco Global Multi Asset is expected to generate 1.24 times more return on investment than Barings Emerging. However, Pimco Global is 1.24 times more volatile than Barings Emerging Markets. It trades about 0.31 of its potential returns per unit of risk. Barings Emerging Markets is currently generating about 0.02 per unit of risk. If you would invest 1,464 in Pimco Global Multi Asset on September 4, 2024 and sell it today you would earn a total of 37.00 from holding Pimco Global Multi Asset or generate 2.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Global Multi Asset vs. Barings Emerging Markets
Performance |
| Timeline |
| Pimco Global Multi |
| Barings Emerging Markets |
Pimco Global and Barings Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Global and Barings Emerging
The main advantage of trading using opposite Pimco Global and Barings Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Global position performs unexpectedly, Barings Emerging 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 Barings Emerging will offset losses from the drop in Barings Emerging's long position.| Pimco Global vs. Pimco Rae Worldwide | Pimco Global vs. Pimco Rae Worldwide | Pimco Global vs. Pimco Rae Worldwide | Pimco Global vs. Pimco Rae Worldwide |
| Barings Emerging vs. T Rowe Price | Barings Emerging vs. Volumetric Fund Volumetric | Barings Emerging vs. Rbb Fund | Barings Emerging vs. T Rowe Price |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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