Correlation Between Pimco Dynamic and Brandes Emerging
Can any of the company-specific risk be diversified away by investing in both Pimco Dynamic and Brandes Emerging 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 Dynamic and Brandes Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Dynamic Income and Brandes Emerging Markets, you can compare the effects of market volatilities on Pimco Dynamic and Brandes Emerging 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 Dynamic with a short position of Brandes Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Dynamic and Brandes Emerging.
Diversification Opportunities for Pimco Dynamic and Brandes Emerging
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pimco and Brandes is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Dynamic Income and Brandes Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brandes Emerging Markets and Pimco Dynamic 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 Dynamic Income are associated (or correlated) with Brandes Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brandes Emerging Markets has no effect on the direction of Pimco Dynamic i.e., Pimco Dynamic and Brandes Emerging go up and down completely randomly.
Pair Corralation between Pimco Dynamic and Brandes Emerging
Considering the 90-day investment horizon Pimco Dynamic Income is expected to under-perform the Brandes Emerging. In addition to that, Pimco Dynamic is 1.11 times more volatile than Brandes Emerging Markets. It trades about -0.08 of its total potential returns per unit of risk. Brandes Emerging Markets is currently generating about 0.21 per unit of volatility. If you would invest 1,064 in Brandes Emerging Markets on August 29, 2025 and sell it today you would earn a total of 125.00 from holding Brandes Emerging Markets or generate 11.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Dynamic Income vs. Brandes Emerging Markets
Performance |
| Timeline |
| Pimco Dynamic Income |
| Brandes Emerging Markets |
Pimco Dynamic and Brandes Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Dynamic and Brandes Emerging
The main advantage of trading using opposite Pimco Dynamic and Brandes Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Dynamic position performs unexpectedly, Brandes Emerging 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 Brandes Emerging will offset losses from the drop in Brandes Emerging's long position.| Pimco Dynamic vs. Alger Health Sciences | Pimco Dynamic vs. Putnam Global Health | Pimco Dynamic vs. Putnam Global Health | Pimco Dynamic vs. Schwab Health Care |
| Brandes Emerging vs. Cref Money Market | Brandes Emerging vs. Schwab Government Money | Brandes Emerging vs. Prudential Government Money | Brandes Emerging vs. Voya Government Money |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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