Correlation Between Pimco High and Aberdeen Income
Can any of the company-specific risk be diversified away by investing in both Pimco High and Aberdeen Income 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 High and Aberdeen Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco High Income and Aberdeen Income Credit, you can compare the effects of market volatilities on Pimco High and Aberdeen Income 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 High with a short position of Aberdeen Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco High and Aberdeen Income.
Diversification Opportunities for Pimco High and Aberdeen Income
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Pimco and Aberdeen is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Pimco High Income and Aberdeen Income Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Income Credit and Pimco High 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 High Income are associated (or correlated) with Aberdeen Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Income Credit has no effect on the direction of Pimco High i.e., Pimco High and Aberdeen Income go up and down completely randomly.
Pair Corralation between Pimco High and Aberdeen Income
Considering the 90-day investment horizon Pimco High Income is expected to generate 0.93 times more return on investment than Aberdeen Income. However, Pimco High Income is 1.08 times less risky than Aberdeen Income. It trades about 0.08 of its potential returns per unit of risk. Aberdeen Income Credit is currently generating about 0.07 per unit of risk. If you would invest 397.00 in Pimco High Income on August 31, 2024 and sell it today you would earn a total of 105.00 from holding Pimco High Income or generate 26.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco High Income vs. Aberdeen Income Credit
Performance |
| Timeline |
| Pimco High Income |
| Aberdeen Income Credit |
Pimco High and Aberdeen Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco High and Aberdeen Income
The main advantage of trading using opposite Pimco High and Aberdeen Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco High position performs unexpectedly, Aberdeen Income 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 Aberdeen Income will offset losses from the drop in Aberdeen Income's long position.| Pimco High vs. Pcm Fund | Pimco High vs. Pimco Income Strategy | Pimco High vs. Pimco Corporate Income | Pimco High vs. PIMCO Access Income |
| Aberdeen Income vs. MFS Investment Grade | Aberdeen Income vs. Eaton Vance Municipal | Aberdeen Income vs. DTF Tax Free | Aberdeen Income vs. HUMANA INC |
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
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |