Correlation Between Pimco Senior and Pimco Short
Can any of the company-specific risk be diversified away by investing in both Pimco Senior and Pimco Short 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 Senior and Pimco Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Senior Floating and Pimco Short Asset, you can compare the effects of market volatilities on Pimco Senior and Pimco Short 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 Senior with a short position of Pimco Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Senior and Pimco Short.
Diversification Opportunities for Pimco Senior and Pimco Short
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pimco and Pimco is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Senior Floating and Pimco Short Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Short Asset and Pimco Senior 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 Senior Floating are associated (or correlated) with Pimco Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Short Asset has no effect on the direction of Pimco Senior i.e., Pimco Senior and Pimco Short go up and down completely randomly.
Pair Corralation between Pimco Senior and Pimco Short
Assuming the 90 days horizon Pimco Senior is expected to generate 1.83 times less return on investment than Pimco Short. In addition to that, Pimco Senior is 1.89 times more volatile than Pimco Short Asset. It trades about 0.06 of its total potential returns per unit of risk. Pimco Short Asset is currently generating about 0.22 per unit of volatility. If you would invest 983.00 in Pimco Short Asset on December 28, 2024 and sell it today you would earn a total of 12.00 from holding Pimco Short Asset or generate 1.22% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.36% |
Values | Daily Returns |
Pimco Senior Floating vs. Pimco Short Asset
Performance |
Timeline |
Pimco Senior Floating |
Pimco Short Asset |
Pimco Senior and Pimco Short Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pimco Senior and Pimco Short
The main advantage of trading using opposite Pimco Senior and Pimco Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Senior position performs unexpectedly, Pimco Short 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 Short will offset losses from the drop in Pimco Short's long position.Pimco Senior vs. Saat Moderate Strategy | Pimco Senior vs. T Rowe Price | Pimco Senior vs. John Hancock Funds | Pimco Senior vs. Bmo In Retirement Fund |
Pimco Short vs. Us Government Plus | Pimco Short vs. Goldman Sachs Short | Pimco Short vs. Ab Impact Municipal | Pimco Short vs. Old Westbury California |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Transaction History View history of all your transactions and understand their impact on performance |