Correlation Between MINT Income and PIMCO Global

Can any of the company-specific risk be diversified away by investing in both MINT Income and PIMCO Global 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 MINT Income and PIMCO Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between MINT Income Fund and PIMCO Global Incme, you can compare the effects of market volatilities on MINT Income and PIMCO Global 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 MINT Income with a short position of PIMCO Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of MINT Income and PIMCO Global.

Diversification Opportunities for MINT Income and PIMCO Global

0.68

Correlation Coefficient

MINT Income  PIMCO Global

Poor diversification

The 3 months correlation between MINT and PIMCO is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding MINT Income Fund and PIMCO Global Incme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PIMCO Global Incme and MINT 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 MINT Income Fund are associated (or correlated) with PIMCO Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PIMCO Global Incme has no effect on the direction of MINT Income i.e., MINT Income and PIMCO Global go up and down completely randomly.

Pair Corralation between MINT Income and PIMCO Global

Assuming the 90 days trading horizon MINT Income Fund is expected to generate 1.52 times more return on investment than PIMCO Global. However, MINT Income is 1.52 times more volatile than PIMCO Global Incme. It trades about 0.1 of its potential returns per unit of risk. PIMCO Global Incme is currently generating about 0.02 per unit of risk. If you would invest  706.00  in MINT Income Fund on September 3, 2024 and sell it today you would earn a total of  45.00  from holding MINT Income Fund or generate 6.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

MINT Income Fund  vs.  PIMCO Global Incme

MINT Income Fund

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in MINT Income Fund are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental indicators, MINT Income may actually be approaching a critical reversion point that can send shares even higher in January 2025.

PIMCO Global Incme

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in PIMCO Global Incme are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat strong forward indicators, PIMCO Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with MINT Income and PIMCO Global

The main advantage of trading using opposite MINT Income and PIMCO Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MINT Income position performs unexpectedly, PIMCO Global 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 Global will offset losses from the drop in PIMCO Global's long position.

The idea behind MINT Income Fund and PIMCO Global Incme 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .