Correlation Between Allianzgi Diversified and Pimco Income

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

Diversification Opportunities for Allianzgi Diversified and Pimco Income

0.51
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Allianzgi and Pimco is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Diversified Income and Pimco Income Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Income Strategy and Allianzgi Diversified 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 Allianzgi Diversified Income are associated (or correlated) with Pimco Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Income Strategy has no effect on the direction of Allianzgi Diversified i.e., Allianzgi Diversified and Pimco Income go up and down completely randomly.

Pair Corralation between Allianzgi Diversified and Pimco Income

Considering the 90-day investment horizon Allianzgi Diversified Income is expected to generate 1.73 times more return on investment than Pimco Income. However, Allianzgi Diversified is 1.73 times more volatile than Pimco Income Strategy. It trades about 0.18 of its potential returns per unit of risk. Pimco Income Strategy is currently generating about 0.02 per unit of risk. If you would invest  2,432  in Allianzgi Diversified Income on September 13, 2025 and sell it today you would earn a total of  181.00  from holding Allianzgi Diversified Income or generate 7.44% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Allianzgi Diversified Income  vs.  Pimco Income Strategy

 Performance 
       Timeline  
Allianzgi Diversified 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Allianzgi Diversified Income are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly unsteady fundamental indicators, Allianzgi Diversified may actually be approaching a critical reversion point that can send shares even higher in January 2026.
Pimco Income Strategy 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Pimco Income Strategy are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent technical and fundamental indicators, Pimco Income is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Allianzgi Diversified and Pimco Income Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Allianzgi Diversified and Pimco Income

The main advantage of trading using opposite Allianzgi Diversified and Pimco Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Diversified position performs unexpectedly, Pimco 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 Pimco Income will offset losses from the drop in Pimco Income's long position.
The idea behind Allianzgi Diversified Income and Pimco Income Strategy 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

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