Correlation Between Pimco Incme and Strategic Income
Can any of the company-specific risk be diversified away by investing in both Pimco Incme and Strategic 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 Pimco Incme and Strategic Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Incme Fund and Strategic Income Fund, you can compare the effects of market volatilities on Pimco Incme and Strategic 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 Pimco Incme with a short position of Strategic Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Incme and Strategic Income.
Diversification Opportunities for Pimco Incme and Strategic Income
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Pimco and Strategic is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Incme Fund and Strategic Income Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Income and Pimco Incme 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 Incme Fund are associated (or correlated) with Strategic Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Income has no effect on the direction of Pimco Incme i.e., Pimco Incme and Strategic Income go up and down completely randomly.
Pair Corralation between Pimco Incme and Strategic Income
Assuming the 90 days horizon Pimco Incme Fund is expected to generate 0.97 times more return on investment than Strategic Income. However, Pimco Incme Fund is 1.03 times less risky than Strategic Income. It trades about 0.09 of its potential returns per unit of risk. Strategic Income Fund is currently generating about 0.07 per unit of risk. If you would invest 933.00 in Pimco Incme Fund on September 3, 2024 and sell it today you would earn a total of 133.00 from holding Pimco Incme Fund or generate 14.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Incme Fund vs. Strategic Income Fund
Performance |
| Timeline |
| Pimco Incme Fund |
| Strategic Income |
Pimco Incme and Strategic Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Incme and Strategic Income
The main advantage of trading using opposite Pimco Incme and Strategic Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Incme position performs unexpectedly, Strategic 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 Strategic Income will offset losses from the drop in Strategic Income's long position.| Pimco Incme vs. New World Fund | Pimco Incme vs. Lord Abbett Short | Pimco Incme vs. First Eagle Global | Pimco Incme vs. Mfs Value Fund |
| Strategic Income vs. Rbc Emerging Markets | Strategic Income vs. Mondrian Emerging Markets | Strategic Income vs. Commodities Strategy Fund | Strategic Income vs. Templeton Emerging Markets |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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