Correlation Between Pimco Energy and Global Resources
Can any of the company-specific risk be diversified away by investing in both Pimco Energy and Global Resources 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 Global Resources 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 Global Resources Fund, you can compare the effects of market volatilities on Pimco Energy and Global Resources 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 Global Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Energy and Global Resources.
Diversification Opportunities for Pimco Energy and Global Resources
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pimco and Global is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Energy Tactical and Global Resources Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Resources 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 Global Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Resources has no effect on the direction of Pimco Energy i.e., Pimco Energy and Global Resources go up and down completely randomly.
Pair Corralation between Pimco Energy and Global Resources
Considering the 90-day investment horizon Pimco Energy is expected to generate 3.54 times less return on investment than Global Resources. But when comparing it to its historical volatility, Pimco Energy Tactical is 1.14 times less risky than Global Resources. It trades about 0.1 of its potential returns per unit of risk. Global Resources Fund is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 419.00 in Global Resources Fund on June 4, 2025 and sell it today you would earn a total of 75.00 from holding Global Resources Fund or generate 17.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Pimco Energy Tactical vs. Global Resources Fund
Performance |
| Timeline |
| Pimco Energy Tactical |
| Global Resources |
Pimco Energy and Global Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Energy and Global Resources
The main advantage of trading using opposite Pimco Energy and Global Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Energy position performs unexpectedly, Global Resources 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 Global Resources will offset losses from the drop in Global Resources' long position.| Pimco Energy vs. Gmo High Yield | Pimco Energy vs. Prudential High Yield | Pimco Energy vs. Strategic Advisers Income | Pimco Energy vs. Columbia High Yield |
| Global Resources vs. The Gabelli Global | Global Resources vs. Morgan Stanley Global | Global Resources vs. Siit Global Managed | Global Resources vs. Gamco Global Opportunity |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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