Correlation Between Pimco Income and Pimco Capital
Can any of the company-specific risk be diversified away by investing in both Pimco Income and Pimco Capital 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 Pimco Capital 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 Pimco Capital Sec, you can compare the effects of market volatilities on Pimco Income and Pimco Capital 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 Pimco Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Income and Pimco Capital.
Diversification Opportunities for Pimco Income and Pimco Capital
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Pimco and Pimco is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Income Fund and Pimco Capital Sec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Capital Sec 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 Pimco Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Capital Sec has no effect on the direction of Pimco Income i.e., Pimco Income and Pimco Capital go up and down completely randomly.
Pair Corralation between Pimco Income and Pimco Capital
Assuming the 90 days horizon Pimco Income Fund is expected to generate 1.85 times more return on investment than Pimco Capital. However, Pimco Income is 1.85 times more volatile than Pimco Capital Sec. It trades about 0.17 of its potential returns per unit of risk. Pimco Capital Sec is currently generating about -0.08 per unit of risk. If you would invest 1,054 in Pimco Income Fund on August 28, 2024 and sell it today you would earn a total of 9.00 from holding Pimco Income Fund or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Income Fund vs. Pimco Capital Sec
Performance |
| Timeline |
| Pimco Income |
| Pimco Capital Sec |
Pimco Income and Pimco Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Income and Pimco Capital
The main advantage of trading using opposite Pimco Income and Pimco Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Income position performs unexpectedly, Pimco Capital 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 Capital will offset losses from the drop in Pimco Capital's long position.| Pimco Income vs. Shelton Emerging Markets | Pimco Income vs. Western Asset Diversified | Pimco Income vs. Crossmark Steward Equity | Pimco Income vs. Origin Emerging Markets |
| Pimco Capital vs. Nuveen Preferred Securities | Pimco Capital vs. Cohen Steers Preferd | Pimco Capital vs. Pimco Income Fund | Pimco Capital vs. Pimco Floating Income |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |