Correlation Between Pimco Strategic and Pimco Global

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

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

Diversification Opportunities for Pimco Strategic and Pimco Global

-0.52

Correlation Coefficient

Pimco Strategic  Pimco Global

Excellent diversification

The 3 months correlation between Pimco and Pimco is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Strategic Income and Pimco Global Stocksplus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Global Stocksplus and Pimco Strategic 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 Strategic Income are associated (or correlated) with Pimco Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Global Stocksplus has no effect on the direction of Pimco Strategic i.e., Pimco Strategic and Pimco Global go up and down completely randomly.

Pair Corralation between Pimco Strategic and Pimco Global

Considering the 90-day investment horizon Pimco Strategic Income is expected to under-perform the Pimco Global. In addition to that, Pimco Strategic is 5.35 times more volatile than Pimco Global Stocksplus. It trades about -0.05 of its total potential returns per unit of risk. Pimco Global Stocksplus is currently generating about 0.16 per unit of volatility. If you would invest  756.00  in Pimco Global Stocksplus on December 27, 2024 and sell it today you would earn a total of  50.00  from holding Pimco Global Stocksplus or generate 6.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Pimco Strategic Income  vs.  Pimco Global Stocksplus

Pimco Strategic Income

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pimco Strategic Income has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest unfluctuating performance, the Fund's fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the fund private investors.

Pimco Global Stocksplus

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Pimco Global Stocksplus are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. Even with relatively unfluctuating technical and fundamental indicators, Pimco Global may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Pimco Strategic and Pimco Global

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

The idea behind Pimco Strategic Income and Pimco Global Stocksplus 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.