Correlation Between Pimco Income and Pimco Floating
Can any of the company-specific risk be diversified away by investing in both Pimco Income and Pimco Floating 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 Income and Pimco Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Income Fund and Pimco Floating Income, you can compare the effects of market volatilities on Pimco Income and Pimco Floating 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 Income with a short position of Pimco Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Income and Pimco Floating.
Diversification Opportunities for Pimco Income and Pimco Floating
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pimco and Pimco is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Income Fund and Pimco Floating Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Floating Income and Pimco Income 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 Income Fund are associated (or correlated) with Pimco Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Floating Income has no effect on the direction of Pimco Income i.e., Pimco Income and Pimco Floating go up and down completely randomly.
Pair Corralation between Pimco Income and Pimco Floating
Assuming the 90 days horizon Pimco Income is expected to generate 1.36 times less return on investment than Pimco Floating. In addition to that, Pimco Income is 1.54 times more volatile than Pimco Floating Income. It trades about 0.08 of its total potential returns per unit of risk. Pimco Floating Income is currently generating about 0.16 per unit of volatility. If you would invest 766.00 in Pimco Floating Income on August 28, 2024 and sell it today you would earn a total of 45.00 from holding Pimco Floating Income or generate 5.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Income Fund vs. Pimco Floating Income
Performance |
| Timeline |
| Pimco Income |
| Pimco Floating Income |
Pimco Income and Pimco Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Income and Pimco Floating
The main advantage of trading using opposite Pimco Income and Pimco Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Income position performs unexpectedly, Pimco Floating 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 Pimco Floating will offset losses from the drop in Pimco Floating's long position.| Pimco Income vs. Doubleline Total Return | Pimco Income vs. Investment Grade Porate | Pimco Income vs. Pimco Foreign Bond | Pimco Income vs. Metropolitan West Total |
| Pimco Floating vs. Pimco Rae Worldwide | Pimco Floating vs. Pimco Rae Worldwide | Pimco Floating vs. Pimco Rae Worldwide | Pimco Floating vs. Pimco Rae Worldwide |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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