Correlation Between Pimco High and Hsbc Treasury

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Can any of the company-specific risk be diversified away by investing in both Pimco High and Hsbc Treasury 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 High and Hsbc Treasury into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco High Yield and Hsbc Treasury Money, you can compare the effects of market volatilities on Pimco High and Hsbc Treasury 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 High with a short position of Hsbc Treasury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco High and Hsbc Treasury.

Diversification Opportunities for Pimco High and Hsbc Treasury

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Pimco and Hsbc is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Pimco High Yield and Hsbc Treasury Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hsbc Treasury Money and Pimco High 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 High Yield are associated (or correlated) with Hsbc Treasury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hsbc Treasury Money has no effect on the direction of Pimco High i.e., Pimco High and Hsbc Treasury go up and down completely randomly.

Pair Corralation between Pimco High and Hsbc Treasury

If you would invest  781.00  in Pimco High Yield on October 24, 2024 and sell it today you would earn a total of  64.00  from holding Pimco High Yield or generate 8.19% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy40.57%
ValuesDaily Returns

Pimco High Yield  vs.  Hsbc Treasury Money

 Performance 
       Timeline  
Pimco High Yield 

Risk-Adjusted Performance

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Very Weak
Over the last 90 days Pimco High Yield has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Pimco High is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Hsbc Treasury Money 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Hsbc Treasury Money has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Hsbc Treasury is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pimco High and Hsbc Treasury Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Pimco High and Hsbc Treasury

The main advantage of trading using opposite Pimco High and Hsbc Treasury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco High position performs unexpectedly, Hsbc Treasury 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 Hsbc Treasury will offset losses from the drop in Hsbc Treasury's long position.
The idea behind Pimco High Yield and Hsbc Treasury Money 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.

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