Correlation Between Pimco Corporate and Pimco Income
Can any of the company-specific risk be diversified away by investing in both Pimco Corporate and Pimco 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 Corporate and Pimco Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Corporate Income and Pimco Income Strategy, you can compare the effects of market volatilities on Pimco Corporate and Pimco 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 Corporate with a short position of Pimco Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Corporate and Pimco Income.
Diversification Opportunities for Pimco Corporate and Pimco Income
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pimco and Pimco is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Corporate Income and Pimco Income Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Income Strategy and Pimco Corporate 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 Corporate Income are associated (or correlated) with Pimco Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Income Strategy has no effect on the direction of Pimco Corporate i.e., Pimco Corporate and Pimco Income go up and down completely randomly.
Pair Corralation between Pimco Corporate and Pimco Income
Considering the 90-day investment horizon Pimco Corporate Income is expected to generate 1.16 times more return on investment than Pimco Income. However, Pimco Corporate is 1.16 times more volatile than Pimco Income Strategy. It trades about 0.08 of its potential returns per unit of risk. Pimco Income Strategy is currently generating about 0.07 per unit of risk. If you would invest 1,039 in Pimco Corporate Income on August 28, 2024 and sell it today you would earn a total of 426.00 from holding Pimco Corporate Income or generate 41.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Pimco Corporate Income vs. Pimco Income Strategy
Performance |
| Timeline |
| Pimco Corporate Income |
| Pimco Income Strategy |
Pimco Corporate and Pimco Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Corporate and Pimco Income
The main advantage of trading using opposite Pimco Corporate and Pimco Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Corporate position performs unexpectedly, Pimco 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 Pimco Income will offset losses from the drop in Pimco Income's long position.| Pimco Corporate vs. Pimco Dynamic Income | Pimco Corporate vs. Guggenheim Strategic Opportunities | Pimco Corporate vs. Brookfield Real Assets | Pimco Corporate vs. Reaves Utility If |
| Pimco Income vs. Pimco Dynamic Income | Pimco Income vs. Guggenheim Strategic Opportunities | Pimco Income vs. Pimco Dynamic Income | Pimco Income vs. BlackRock Limited Duration |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |