Correlation Between Pimco Stocksplus and Pimco Capital
Can any of the company-specific risk be diversified away by investing in both Pimco Stocksplus 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 Stocksplus 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 Stocksplus Ar and Pimco Capital Sec, you can compare the effects of market volatilities on Pimco Stocksplus 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 Stocksplus with a short position of Pimco Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Stocksplus and Pimco Capital.
Diversification Opportunities for Pimco Stocksplus and Pimco Capital
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pimco and Pimco is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Stocksplus Ar 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 Stocksplus 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 Stocksplus Ar 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 Stocksplus i.e., Pimco Stocksplus and Pimco Capital go up and down completely randomly.
Pair Corralation between Pimco Stocksplus and Pimco Capital
Assuming the 90 days horizon Pimco Stocksplus Ar is expected to under-perform the Pimco Capital. In addition to that, Pimco Stocksplus is 5.1 times more volatile than Pimco Capital Sec. It trades about -0.29 of its total potential returns per unit of risk. Pimco Capital Sec is currently generating about 0.19 per unit of volatility. If you would invest 933.00 in Pimco Capital Sec on September 2, 2024 and sell it today you would earn a total of 5.00 from holding Pimco Capital Sec or generate 0.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Stocksplus Ar vs. Pimco Capital Sec
Performance |
| Timeline |
| Pimco Stocksplus |
| Pimco Capital Sec |
Pimco Stocksplus and Pimco Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Stocksplus and Pimco Capital
The main advantage of trading using opposite Pimco Stocksplus and Pimco Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Stocksplus 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 Stocksplus vs. Pimco Rae Worldwide | Pimco Stocksplus vs. Pimco Rae Worldwide | Pimco Stocksplus vs. Pimco Rae Worldwide | Pimco Stocksplus vs. Pimco Rae Worldwide |
| 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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