Correlation Between Pimco Income and Managed Account
Can any of the company-specific risk be diversified away by investing in both Pimco Income and Managed Account 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 Managed Account 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 Managed Account Series, you can compare the effects of market volatilities on Pimco Income and Managed Account 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 Managed Account. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Income and Managed Account.
Diversification Opportunities for Pimco Income and Managed Account
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Pimco and Managed is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Income Fund and Managed Account Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Managed Account Series 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 Managed Account. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Managed Account Series has no effect on the direction of Pimco Income i.e., Pimco Income and Managed Account go up and down completely randomly.
Pair Corralation between Pimco Income and Managed Account
Assuming the 90 days horizon Pimco Income is expected to generate 1.11 times less return on investment than Managed Account. But when comparing it to its historical volatility, Pimco Income Fund is 1.08 times less risky than Managed Account. It trades about 0.12 of its potential returns per unit of risk. Managed Account Series is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 798.00 in Managed Account Series on September 12, 2024 and sell it today you would earn a total of 103.00 from holding Managed Account Series or generate 12.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Income Fund vs. Managed Account Series
Performance |
| Timeline |
| Pimco Income |
| Managed Account Series |
Pimco Income and Managed Account Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Income and Managed Account
The main advantage of trading using opposite Pimco Income and Managed Account positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Income position performs unexpectedly, Managed Account 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 Managed Account will offset losses from the drop in Managed Account's long position.| Pimco Income vs. T Rowe Price | Pimco Income vs. Ab Bond Inflation | Pimco Income vs. T Rowe Price | Pimco Income vs. Ambrus Core Bond |
| Managed Account vs. Pimco Income Fund | Managed Account vs. Pimco Income Fund | Managed Account vs. Pimco Incme Fund | Managed Account vs. Pimco Income Fund |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |