Correlation Between Pimco Energy and Pimco Global
Can any of the company-specific risk be diversified away by investing in both Pimco Energy 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 Energy 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 Energy Tactical and Pimco Global Multi Asset, you can compare the effects of market volatilities on Pimco Energy 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 Energy with a short position of Pimco Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Energy and Pimco Global.
Diversification Opportunities for Pimco Energy and Pimco Global
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Pimco and Pimco is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Energy Tactical and Pimco Global Multi Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Global Multi and Pimco Energy 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 Energy Tactical 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 Multi has no effect on the direction of Pimco Energy i.e., Pimco Energy and Pimco Global go up and down completely randomly.
Pair Corralation between Pimco Energy and Pimco Global
Considering the 90-day investment horizon Pimco Energy Tactical is expected to generate 2.77 times more return on investment than Pimco Global. However, Pimco Energy is 2.77 times more volatile than Pimco Global Multi Asset. It trades about 0.19 of its potential returns per unit of risk. Pimco Global Multi Asset is currently generating about 0.36 per unit of risk. If you would invest 2,202 in Pimco Energy Tactical on May 1, 2025 and sell it today you would earn a total of 278.00 from holding Pimco Energy Tactical or generate 12.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Energy Tactical vs. Pimco Global Multi Asset
Performance |
| Timeline |
| Pimco Energy Tactical |
| Pimco Global Multi |
Pimco Energy and Pimco Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Energy and Pimco Global
The main advantage of trading using opposite Pimco Energy and Pimco Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Energy 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.| Pimco Energy vs. Ab Select Equity | Pimco Energy vs. Balanced Fund Retail | Pimco Energy vs. Siit Equity Factor | Pimco Energy vs. Pnc International Equity |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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