Correlation Between Pimco Global and Fxybjx
Can any of the company-specific risk be diversified away by investing in both Pimco Global and Fxybjx 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 Fxybjx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Global Bond and Fxybjx, you can compare the effects of market volatilities on Pimco Global and Fxybjx 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 Fxybjx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Global and Fxybjx.
Diversification Opportunities for Pimco Global and Fxybjx
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pimco and Fxybjx is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Global Bond and Fxybjx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fxybjx 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 Bond are associated (or correlated) with Fxybjx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fxybjx has no effect on the direction of Pimco Global i.e., Pimco Global and Fxybjx go up and down completely randomly.
Pair Corralation between Pimco Global and Fxybjx
Assuming the 90 days horizon Pimco Global Bond is expected to generate 0.39 times more return on investment than Fxybjx. However, Pimco Global Bond is 2.54 times less risky than Fxybjx. It trades about 0.11 of its potential returns per unit of risk. Fxybjx is currently generating about -0.11 per unit of risk. If you would invest 858.00 in Pimco Global Bond on December 12, 2024 and sell it today you would earn a total of 105.00 from holding Pimco Global Bond or generate 12.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 8.72% |
| Values | Daily Returns |
Pimco Global Bond vs. Fxybjx
Performance |
| Timeline |
| Pimco Global Bond |
| Fxybjx |
Pimco Global and Fxybjx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Global and Fxybjx
The main advantage of trading using opposite Pimco Global and Fxybjx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Global position performs unexpectedly, Fxybjx 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 Fxybjx will offset losses from the drop in Fxybjx's long position.| Pimco Global vs. Global Technology Portfolio | ||
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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