Correlation Between PIMCO Mortgage and Global X
Can any of the company-specific risk be diversified away by investing in both PIMCO Mortgage and Global X 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 Mortgage and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PIMCO Mortgage Backed Securities and Global X Interest, you can compare the effects of market volatilities on PIMCO Mortgage and Global X 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 Mortgage with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of PIMCO Mortgage and Global X.
Diversification Opportunities for PIMCO Mortgage and Global X
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PIMCO and Global is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding PIMCO Mortgage Backed Securiti and Global X Interest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Interest and PIMCO Mortgage 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 Mortgage Backed Securities are associated (or correlated) with Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Interest has no effect on the direction of PIMCO Mortgage i.e., PIMCO Mortgage and Global X go up and down completely randomly.
Pair Corralation between PIMCO Mortgage and Global X
Given the investment horizon of 90 days PIMCO Mortgage is expected to generate 2.69 times less return on investment than Global X. But when comparing it to its historical volatility, PIMCO Mortgage Backed Securities is 3.99 times less risky than Global X. It trades about 0.09 of its potential returns per unit of risk. Global X Interest is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,979 in Global X Interest on November 2, 2024 and sell it today you would earn a total of 28.00 from holding Global X Interest or generate 1.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PIMCO Mortgage Backed Securiti vs. Global X Interest
Performance |
| Timeline |
| PIMCO Mortgage Backed |
| Global X Interest |
PIMCO Mortgage and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PIMCO Mortgage and Global X
The main advantage of trading using opposite PIMCO Mortgage and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PIMCO Mortgage position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| PIMCO Mortgage vs. Columbia Diversified Fixed | PIMCO Mortgage vs. Doubleline Etf Trust | PIMCO Mortgage vs. Virtus Newfleet ABSMBS | PIMCO Mortgage vs. Vident Core Bond |
| Global X vs. Movano Inc | Global X vs. Grayscale Solana Trust | Global X vs. Travelzoo | Global X vs. Sonida Senior Living |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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