Correlation Between Pimco Preferred and All Asset
Can any of the company-specific risk be diversified away by investing in both Pimco Preferred and All Asset 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 Preferred and All Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Preferred And and All Asset Fund, you can compare the effects of market volatilities on Pimco Preferred and All Asset 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 Preferred with a short position of All Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Preferred and All Asset.
Diversification Opportunities for Pimco Preferred and All Asset
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Pimco and All is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Preferred And and All Asset Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on All Asset Fund and Pimco Preferred 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 Preferred And are associated (or correlated) with All Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of All Asset Fund has no effect on the direction of Pimco Preferred i.e., Pimco Preferred and All Asset go up and down completely randomly.
Pair Corralation between Pimco Preferred and All Asset
Assuming the 90 days horizon Pimco Preferred And is expected to under-perform the All Asset. But the mutual fund apears to be less risky and, when comparing its historical volatility, Pimco Preferred And is 1.76 times less risky than All Asset. The mutual fund trades about 0.0 of its potential returns per unit of risk. The All Asset Fund is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,099 in All Asset Fund on March 22, 2025 and sell it today you would earn a total of 8.00 from holding All Asset Fund or generate 0.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Preferred And vs. All Asset Fund
Performance |
| Timeline |
| Pimco Preferred And |
| All Asset Fund |
Pimco Preferred and All Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Preferred and All Asset
The main advantage of trading using opposite Pimco Preferred and All Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Preferred position performs unexpectedly, All Asset 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 All Asset will offset losses from the drop in All Asset's long position.| Pimco Preferred vs. Barings Global Floating | Pimco Preferred vs. Ab Global Bond | Pimco Preferred vs. Ab Global Bond | Pimco Preferred vs. Ab Global Risk |
| All Asset vs. Alger Health Sciences | All Asset vs. Fidelity Advisor Health | All Asset vs. T Rowe Price | All Asset vs. Blackrock Health Sciences |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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