Correlation Between Pimco International and Stocksplus Total
Can any of the company-specific risk be diversified away by investing in both Pimco International and Stocksplus Total 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 International and Stocksplus Total into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco International Stocksplus and Stocksplus Total Return, you can compare the effects of market volatilities on Pimco International and Stocksplus Total 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 International with a short position of Stocksplus Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco International and Stocksplus Total.
Diversification Opportunities for Pimco International and Stocksplus Total
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pimco and Stocksplus is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Pimco International Stocksplus and Stocksplus Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stocksplus Total Return and Pimco International 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 International Stocksplus are associated (or correlated) with Stocksplus Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stocksplus Total Return has no effect on the direction of Pimco International i.e., Pimco International and Stocksplus Total go up and down completely randomly.
Pair Corralation between Pimco International and Stocksplus Total
Assuming the 90 days horizon Pimco International Stocksplus is expected to under-perform the Stocksplus Total. But the mutual fund apears to be less risky and, when comparing its historical volatility, Pimco International Stocksplus is 1.51 times less risky than Stocksplus Total. The mutual fund trades about -0.02 of its potential returns per unit of risk. The Stocksplus Total Return is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,265 in Stocksplus Total Return on August 25, 2024 and sell it today you would earn a total of 22.00 from holding Stocksplus Total Return or generate 1.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco International Stocksplus vs. Stocksplus Total Return
Performance |
| Timeline |
| Pimco International |
| Stocksplus Total Return |
Pimco International and Stocksplus Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco International and Stocksplus Total
The main advantage of trading using opposite Pimco International and Stocksplus Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco International position performs unexpectedly, Stocksplus Total 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 Stocksplus Total will offset losses from the drop in Stocksplus Total's long position.| Pimco International vs. Pimco Small Cap | Pimco International vs. Stocksplus Total Return | Pimco International vs. Investment Grade Porate | Pimco International vs. Pimco Income Fund |
| Stocksplus Total vs. Pimco Rae Worldwide | Stocksplus Total vs. Pimco Rae Worldwide | Stocksplus Total vs. Pimco Rae Worldwide | Stocksplus Total 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |