Correlation Between Pimco Income and Pacific Funds
Can any of the company-specific risk be diversified away by investing in both Pimco Income and Pacific Funds 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 Pacific Funds 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 Pacific Funds Strategic, you can compare the effects of market volatilities on Pimco Income and Pacific Funds 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 Pacific Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Income and Pacific Funds.
Diversification Opportunities for Pimco Income and Pacific Funds
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pimco and Pacific is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Income Fund and Pacific Funds Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pacific Funds Strategic 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 Pacific Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pacific Funds Strategic has no effect on the direction of Pimco Income i.e., Pimco Income and Pacific Funds go up and down completely randomly.
Pair Corralation between Pimco Income and Pacific Funds
Assuming the 90 days horizon Pimco Income Fund is expected to generate about the same return on investment as Pacific Funds Strategic. However, Pimco Income is 1.43 times more volatile than Pacific Funds Strategic. It trades about 0.04 of its potential returns per unit of risk. Pacific Funds Strategic is currently producing about 0.06 per unit of risk. If you would invest 1,046 in Pacific Funds Strategic on August 26, 2024 and sell it today you would earn a total of 2.00 from holding Pacific Funds Strategic or generate 0.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Income Fund vs. Pacific Funds Strategic
Performance |
| Timeline |
| Pimco Income |
| Pacific Funds Strategic |
Pimco Income and Pacific Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Income and Pacific Funds
The main advantage of trading using opposite Pimco Income and Pacific Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Income position performs unexpectedly, Pacific Funds 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 Pacific Funds will offset losses from the drop in Pacific Funds' long position.| Pimco Income vs. Massmutual Select T | Pimco Income vs. Qs Large Cap | Pimco Income vs. Aqr Large Cap | Pimco Income vs. Guggenheim Rbp Large Cap |
| Pacific Funds vs. Ips Strategic Capital | Pacific Funds vs. Qs Large Cap | Pacific Funds vs. Small Cap Stock | Pacific Funds vs. L Abbett Fundamental |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |