Correlation Between PIMCO Global and MINT Income

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

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

Diversification Opportunities for PIMCO Global and MINT Income

0.69

Correlation Coefficient

PIMCO Global  MINT Income

Poor diversification

The 3 months correlation between PIMCO and MINT is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding PIMCO Global Incme and MINT Income Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MINT Income Fund and PIMCO Global 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 Global Incme are associated (or correlated) with MINT Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MINT Income Fund has no effect on the direction of PIMCO Global i.e., PIMCO Global and MINT Income go up and down completely randomly.

Pair Corralation between PIMCO Global and MINT Income

Assuming the 90 days trading horizon PIMCO Global is expected to generate 12.15 times less return on investment than MINT Income. But when comparing it to its historical volatility, PIMCO Global Incme is 1.51 times less risky than MINT Income. It trades about 0.01 of its potential returns per unit of risk. MINT Income Fund is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  705.00  in MINT Income Fund on September 4, 2024 and sell it today you would earn a total of  46.00  from holding MINT Income Fund or generate 6.52% return on investment over 90 days.

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

PIMCO Global Incme  vs.  MINT Income Fund

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.

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.

Pair Trading with PIMCO Global and MINT Income

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

The idea behind PIMCO Global Incme and MINT Income Fund 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.