Correlation Between Pimco Income and Guggenheim Total

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Pimco Income and Guggenheim 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 Income and Guggenheim Total 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 Guggenheim Total Return, you can compare the effects of market volatilities on Pimco Income and Guggenheim 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 Income with a short position of Guggenheim Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Income and Guggenheim Total.

Diversification Opportunities for Pimco Income and Guggenheim Total

0.9
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Pimco and Guggenheim is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Income Fund and Guggenheim Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Total Return 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 Guggenheim Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Total Return has no effect on the direction of Pimco Income i.e., Pimco Income and Guggenheim Total go up and down completely randomly.

Pair Corralation between Pimco Income and Guggenheim Total

Assuming the 90 days horizon Pimco Income Fund is expected to generate 0.7 times more return on investment than Guggenheim Total. However, Pimco Income Fund is 1.43 times less risky than Guggenheim Total. It trades about 0.14 of its potential returns per unit of risk. Guggenheim Total Return is currently generating about 0.07 per unit of risk. If you would invest  1,054  in Pimco Income Fund on August 29, 2024 and sell it today you would earn a total of  8.00  from holding Pimco Income Fund or generate 0.76% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Pimco Income Fund  vs.  Guggenheim Total Return

 Performance 
       Timeline  
Pimco Income 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Pimco Income Fund are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Pimco Income is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Guggenheim Total Return 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Guggenheim Total Return has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Guggenheim Total is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pimco Income and Guggenheim Total Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Pimco Income and Guggenheim Total

The main advantage of trading using opposite Pimco Income and Guggenheim Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Income position performs unexpectedly, Guggenheim 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 Guggenheim Total will offset losses from the drop in Guggenheim Total's long position.
The idea behind Pimco Income Fund and Guggenheim Total Return pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

Other Complementary Tools

Share Portfolio
Track or share privately all of your investments from the convenience of any device
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Commodity Directory
Find actively traded commodities issued by global exchanges
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments