Correlation Between Pimco Funds and Pimco Capital

Can any of the company-specific risk be diversified away by investing in both Pimco Funds 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 Funds 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 Funds and Pimco Capital Sec, you can compare the effects of market volatilities on Pimco Funds 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 Funds with a short position of Pimco Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Funds and Pimco Capital.

Diversification Opportunities for Pimco Funds and Pimco Capital

0.0

Correlation Coefficient

Pimco Funds  Pimco Capital

Pay attention - limited upside

The 3 months correlation between Pimco and Pimco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Funds 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 Funds 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 Funds 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 Funds i.e., Pimco Funds and Pimco Capital go up and down completely randomly.

Pair Corralation between Pimco Funds and Pimco Capital

If you would invest  87.00  in Pimco Funds on October 10, 2024 and sell it today you would earn a total of  13.00  from holding Pimco Funds or generate 14.94% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.2%
Values	Daily Returns

Pimco Funds   vs.  Pimco Capital Sec

Pimco Funds

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pimco Funds has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Pimco Funds is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pimco Capital Sec

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pimco Capital Sec has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Pimco Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Pimco Funds and Pimco Capital

The main advantage of trading using opposite Pimco Funds and Pimco Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Funds 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.

The idea behind Pimco Funds and Pimco Capital Sec pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.