Correlation Between Pimco Capital and Gnma Fund
Can any of the company-specific risk be diversified away by investing in both Pimco Capital and Gnma Fund 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 Capital and Gnma Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Capital Sec and Gnma Fund Institutional, you can compare the effects of market volatilities on Pimco Capital and Gnma Fund 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 Capital with a short position of Gnma Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Capital and Gnma Fund.
Diversification Opportunities for Pimco Capital and Gnma Fund
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Pimco and Gnma is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Capital Sec and Gnma Fund Institutional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gnma Fund Institutional and Pimco Capital 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 Capital Sec are associated (or correlated) with Gnma Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gnma Fund Institutional has no effect on the direction of Pimco Capital i.e., Pimco Capital and Gnma Fund go up and down completely randomly.
Pair Corralation between Pimco Capital and Gnma Fund
Assuming the 90 days horizon Pimco Capital is expected to generate 2.06 times less return on investment than Gnma Fund. But when comparing it to its historical volatility, Pimco Capital Sec is 2.11 times less risky than Gnma Fund. It trades about 0.15 of its potential returns per unit of risk. Gnma Fund Institutional is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 905.00 in Gnma Fund Institutional on December 27, 2024 and sell it today you would earn a total of 28.00 from holding Gnma Fund Institutional or generate 3.09% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 98.36% |
Values | Daily Returns |
Pimco Capital Sec vs. Gnma Fund Institutional
Performance |
Timeline |
Pimco Capital Sec |
Gnma Fund Institutional |
Pimco Capital and Gnma Fund Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pimco Capital and Gnma Fund
The main advantage of trading using opposite Pimco Capital and Gnma Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Capital position performs unexpectedly, Gnma Fund 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 Gnma Fund will offset losses from the drop in Gnma Fund's long position.Pimco Capital vs. Pimco Mortgage Opportunities | Pimco Capital vs. Pimco Floating Income | Pimco Capital vs. Pimco High Yield | Pimco Capital vs. Diversified Income Fund |
Gnma Fund vs. Federated Hermes Conservative | Gnma Fund vs. Stone Ridge Diversified | Gnma Fund vs. Oppenheimer International Diversified | Gnma Fund vs. Blackrock Conservative Prprdptfinstttnl |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Global Correlations Find global opportunities by holding instruments from different markets |