Correlation Between Dunham Corporate/govern and Pimco Investment
Can any of the company-specific risk be diversified away by investing in both Dunham Corporate/govern and Pimco Investment 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 Dunham Corporate/govern and Pimco Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dunham Porategovernment Bond and Pimco Investment Grade, you can compare the effects of market volatilities on Dunham Corporate/govern and Pimco Investment 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 Dunham Corporate/govern with a short position of Pimco Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Corporate/govern and Pimco Investment.
Diversification Opportunities for Dunham Corporate/govern and Pimco Investment
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dunham and Pimco is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Porategovernment Bond and Pimco Investment Grade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Investment Grade and Dunham Corporate/govern 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 Dunham Porategovernment Bond are associated (or correlated) with Pimco Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Investment Grade has no effect on the direction of Dunham Corporate/govern i.e., Dunham Corporate/govern and Pimco Investment go up and down completely randomly.
Pair Corralation between Dunham Corporate/govern and Pimco Investment
Assuming the 90 days horizon Dunham Corporate/govern is expected to generate 1.25 times less return on investment than Pimco Investment. But when comparing it to its historical volatility, Dunham Porategovernment Bond is 1.31 times less risky than Pimco Investment. It trades about 0.23 of its potential returns per unit of risk. Pimco Investment Grade is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 884.00 in Pimco Investment Grade on June 10, 2025 and sell it today you would earn a total of 36.00 from holding Pimco Investment Grade or generate 4.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham Porategovernment Bond vs. Pimco Investment Grade
Performance |
| Timeline |
| Dunham Porategovernment |
| Pimco Investment Grade |
Dunham Corporate/govern and Pimco Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Corporate/govern and Pimco Investment
The main advantage of trading using opposite Dunham Corporate/govern and Pimco Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Corporate/govern position performs unexpectedly, Pimco Investment 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 Investment will offset losses from the drop in Pimco Investment's long position.| Dunham Corporate/govern vs. Dunham Dynamic Macro | Dunham Corporate/govern vs. Dunham Appreciation Income | Dunham Corporate/govern vs. Dunham Small Cap | Dunham Corporate/govern vs. Dunham Emerging Markets |
| Pimco Investment vs. Eagle Growth Income | Pimco Investment vs. Tfa Alphagen Growth | Pimco Investment vs. Qs Growth Fund | Pimco Investment vs. Vanguard Mega Cap |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |