Correlation Between Pimco High and Matthews Asian
Can any of the company-specific risk be diversified away by investing in both Pimco High and Matthews Asian 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 Matthews Asian 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 Matthews Asian Growth, you can compare the effects of market volatilities on Pimco High and Matthews Asian 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 Matthews Asian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco High and Matthews Asian.
Diversification Opportunities for Pimco High and Matthews Asian
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Pimco and Matthews is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Pimco High Yield and Matthews Asian Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matthews Asian Growth 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 Matthews Asian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matthews Asian Growth has no effect on the direction of Pimco High i.e., Pimco High and Matthews Asian go up and down completely randomly.
Pair Corralation between Pimco High and Matthews Asian
Assuming the 90 days horizon Pimco High Yield is expected to generate 0.24 times more return on investment than Matthews Asian. However, Pimco High Yield is 4.21 times less risky than Matthews Asian. It trades about 0.12 of its potential returns per unit of risk. Matthews Asian Growth is currently generating about 0.0 per unit of risk. If you would invest 920.00 in Pimco High Yield on November 3, 2024 and sell it today you would earn a total of 4.00 from holding Pimco High Yield or generate 0.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco High Yield vs. Matthews Asian Growth
Performance |
| Timeline |
| Pimco High Yield |
| Matthews Asian Growth |
Pimco High and Matthews Asian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco High and Matthews Asian
The main advantage of trading using opposite Pimco High and Matthews Asian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco High position performs unexpectedly, Matthews Asian 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 Matthews Asian will offset losses from the drop in Matthews Asian's long position.| Pimco High vs. Pimco Short Asset | Pimco High vs. Pimco Em Fundamental | Pimco High vs. Pimco Long Term Credit | Pimco High vs. Pimco Moditiesplus Strategy |
| Matthews Asian vs. Matthews Pacific Tiger | Matthews Asian vs. Matthews China Fund | Matthews Asian vs. Matthews Asia Dividend | Matthews Asian vs. Matthews Asia Growth |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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