Correlation Between Pimco Dynamic and Oxford Square
Can any of the company-specific risk be diversified away by investing in both Pimco Dynamic and Oxford Square 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 Dynamic and Oxford Square into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Dynamic Income and Oxford Square Capital, you can compare the effects of market volatilities on Pimco Dynamic and Oxford Square 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 Dynamic with a short position of Oxford Square. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Dynamic and Oxford Square.
Diversification Opportunities for Pimco Dynamic and Oxford Square
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pimco and Oxford is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Dynamic Income and Oxford Square Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Square Capital and Pimco Dynamic 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 Dynamic Income are associated (or correlated) with Oxford Square. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Square Capital has no effect on the direction of Pimco Dynamic i.e., Pimco Dynamic and Oxford Square go up and down completely randomly.
Pair Corralation between Pimco Dynamic and Oxford Square
Considering the 90-day investment horizon Pimco Dynamic Income is expected to generate 0.36 times more return on investment than Oxford Square. However, Pimco Dynamic Income is 2.78 times less risky than Oxford Square. It trades about 0.41 of its potential returns per unit of risk. Oxford Square Capital is currently generating about 0.12 per unit of risk. If you would invest 1,782 in Pimco Dynamic Income on December 27, 2024 and sell it today you would earn a total of 190.00 from holding Pimco Dynamic Income or generate 10.66% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Pimco Dynamic Income vs. Oxford Square Capital
Performance |
Timeline |
Pimco Dynamic Income |
Oxford Square Capital |
Pimco Dynamic and Oxford Square Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pimco Dynamic and Oxford Square
The main advantage of trading using opposite Pimco Dynamic and Oxford Square positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Dynamic position performs unexpectedly, Oxford Square 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 Oxford Square will offset losses from the drop in Oxford Square's long position.Pimco Dynamic vs. Pimco Corporate Income | Pimco Dynamic vs. Guggenheim Strategic Opportunities | Pimco Dynamic vs. Pimco Dynamic Income | Pimco Dynamic vs. Pimco High Income |
Oxford Square vs. Eagle Point Credit | Oxford Square vs. Cornerstone Strategic Return | Oxford Square vs. Cornerstone Strategic Value | Oxford Square vs. Guggenheim Strategic Opportunities |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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