Correlation Between Pimco High and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Pimco High and Cohen Steers 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 Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco High Yield and Cohen Steers Low, you can compare the effects of market volatilities on Pimco High and Cohen Steers 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 Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco High and Cohen Steers.
Diversification Opportunities for Pimco High and Cohen Steers
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between PIMCO and Cohen is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Pimco High Yield and Cohen Steers Low in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Low 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 Yield are associated (or correlated) with Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Low has no effect on the direction of Pimco High i.e., Pimco High and Cohen Steers go up and down completely randomly.
Pair Corralation between Pimco High and Cohen Steers
Assuming the 90 days horizon Pimco High Yield is expected to generate 1.88 times more return on investment than Cohen Steers. However, Pimco High is 1.88 times more volatile than Cohen Steers Low. It trades about 0.19 of its potential returns per unit of risk. Cohen Steers Low is currently generating about 0.07 per unit of risk. If you would invest 919.00 in Pimco High Yield on August 28, 2024 and sell it today you would earn a total of 5.00 from holding Pimco High Yield or generate 0.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Pimco High Yield vs. Cohen Steers Low
Performance |
| Timeline |
| Pimco High Yield |
| Cohen Steers Low |
Pimco High and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco High and Cohen Steers
The main advantage of trading using opposite Pimco High and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco High position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' long position.| Pimco High vs. Pimco Rae Worldwide | Pimco High vs. Pimco Rae Worldwide | Pimco High vs. Pimco Rae Worldwide | Pimco High vs. Pimco Rae Worldwide |
| Cohen Steers vs. Cohen Steers Mlp | Cohen Steers vs. Cohen Steers Mlp | Cohen Steers vs. Cohen Steers Mlp | Cohen Steers vs. Cohen Steers Mlp |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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