Correlation Between Pimco High and Strategic Asset
Can any of the company-specific risk be diversified away by investing in both Pimco High and Strategic Asset 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 Strategic Asset 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 Strategic Asset Management, you can compare the effects of market volatilities on Pimco High and Strategic Asset 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 Strategic Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco High and Strategic Asset.
Diversification Opportunities for Pimco High and Strategic Asset
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pimco and Strategic is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Pimco High Yield and Strategic Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Asset Mana 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 Strategic Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Asset Mana has no effect on the direction of Pimco High i.e., Pimco High and Strategic Asset go up and down completely randomly.
Pair Corralation between Pimco High and Strategic Asset
Assuming the 90 days horizon Pimco High is expected to generate 1.36 times less return on investment than Strategic Asset. But when comparing it to its historical volatility, Pimco High Yield is 1.85 times less risky than Strategic Asset. It trades about 0.16 of its potential returns per unit of risk. Strategic Asset Management is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,318 in Strategic Asset Management on September 12, 2024 and sell it today you would earn a total of 443.00 from holding Strategic Asset Management or generate 33.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco High Yield vs. Strategic Asset Management
Performance |
| Timeline |
| Pimco High Yield |
| Strategic Asset Mana |
Pimco High and Strategic Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco High and Strategic Asset
The main advantage of trading using opposite Pimco High and Strategic Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco High position performs unexpectedly, Strategic Asset 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 Strategic Asset will offset losses from the drop in Strategic Asset's long position.| Pimco High vs. Pimco Rae Worldwide | Pimco High vs. Pimco Realestaterealreturn Strategy | Pimco High vs. Pimco Funds | Pimco High vs. Pimco Rae Worldwide |
| Strategic Asset vs. 1919 Financial Services | Strategic Asset vs. Prudential Jennison Financial | Strategic Asset vs. Blackrock Financial Institutions | Strategic Asset vs. Davis Financial Fund |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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