Correlation Between Pacific Funds and Pimco Income
Can any of the company-specific risk be diversified away by investing in both Pacific Funds and Pimco Income 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 Pacific Funds and Pimco Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pacific Funds Strategic and Pimco Income Fund, you can compare the effects of market volatilities on Pacific Funds and Pimco Income 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 Pacific Funds with a short position of Pimco Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pacific Funds and Pimco Income.
Diversification Opportunities for Pacific Funds and Pimco Income
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pacific and Pimco is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Pacific Funds Strategic and Pimco Income Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Income and Pacific Funds 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 Pacific Funds Strategic are associated (or correlated) with Pimco Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Income has no effect on the direction of Pacific Funds i.e., Pacific Funds and Pimco Income go up and down completely randomly.
Pair Corralation between Pacific Funds and Pimco Income
Assuming the 90 days horizon Pacific Funds Strategic is expected to generate 0.78 times more return on investment than Pimco Income. However, Pacific Funds Strategic is 1.28 times less risky than Pimco Income. It trades about 0.14 of its potential returns per unit of risk. Pimco Income Fund is currently generating about 0.1 per unit of risk. If you would invest 946.00 in Pacific Funds Strategic on September 12, 2024 and sell it today you would earn a total of 115.00 from holding Pacific Funds Strategic or generate 12.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pacific Funds Strategic vs. Pimco Income Fund
Performance |
| Timeline |
| Pacific Funds Strategic |
| Pimco Income |
Pacific Funds and Pimco Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pacific Funds and Pimco Income
The main advantage of trading using opposite Pacific Funds and Pimco Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pacific Funds position performs unexpectedly, Pimco Income 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 Income will offset losses from the drop in Pimco Income's long position.| Pacific Funds vs. Pimco Income Fund | Pacific Funds vs. Pimco Income Fund | Pacific Funds vs. Pimco Incme Fund | Pacific Funds vs. Pimco Income Fund |
| Pimco Income vs. Vanguard Financials Index | Pimco Income vs. Blackrock Financial Institutions | Pimco Income vs. Goldman Sachs Financial | Pimco Income vs. Angel Oak Financial |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |