Correlation Between SPDR Bloomberg and PIMCO 15
Can any of the company-specific risk be diversified away by investing in both SPDR Bloomberg and PIMCO 15 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 SPDR Bloomberg and PIMCO 15 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Bloomberg 1 10 and PIMCO 15 Year, you can compare the effects of market volatilities on SPDR Bloomberg and PIMCO 15 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 SPDR Bloomberg with a short position of PIMCO 15. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Bloomberg and PIMCO 15.
Diversification Opportunities for SPDR Bloomberg and PIMCO 15
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SPDR and PIMCO is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Bloomberg 1 10 and PIMCO 15 Year in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PIMCO 15 Year and SPDR Bloomberg 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 SPDR Bloomberg 1 10 are associated (or correlated) with PIMCO 15. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PIMCO 15 Year has no effect on the direction of SPDR Bloomberg i.e., SPDR Bloomberg and PIMCO 15 go up and down completely randomly.
Pair Corralation between SPDR Bloomberg and PIMCO 15
Given the investment horizon of 90 days SPDR Bloomberg is expected to generate 1.47 times less return on investment than PIMCO 15. But when comparing it to its historical volatility, SPDR Bloomberg 1 10 is 4.1 times less risky than PIMCO 15. It trades about 0.14 of its potential returns per unit of risk. PIMCO 15 Year is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 5,254 in PIMCO 15 Year on August 28, 2024 and sell it today you would earn a total of 239.00 from holding PIMCO 15 Year or generate 4.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Bloomberg 1 10 vs. PIMCO 15 Year
Performance |
| Timeline |
| SPDR Bloomberg 1 |
| PIMCO 15 Year |
SPDR Bloomberg and PIMCO 15 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Bloomberg and PIMCO 15
The main advantage of trading using opposite SPDR Bloomberg and PIMCO 15 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Bloomberg position performs unexpectedly, PIMCO 15 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 15 will offset losses from the drop in PIMCO 15's long position.| SPDR Bloomberg vs. SPDR Portfolio TIPS | SPDR Bloomberg vs. FlexShares iBoxx 5 Year | SPDR Bloomberg vs. FlexShares iBoxx 3 Year | SPDR Bloomberg vs. PIMCO Broad TIPS |
| PIMCO 15 vs. VanEck JP Morgan | PIMCO 15 vs. Vanguard Extended Duration | PIMCO 15 vs. PIMCO 1 5 Year | PIMCO 15 vs. PIMCO Broad TIPS |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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