Correlation Between Pimco Floating and California Intermediate
Can any of the company-specific risk be diversified away by investing in both Pimco Floating and California Intermediate 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 Floating and California Intermediate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Floating Income and California Intermediate Municipal, you can compare the effects of market volatilities on Pimco Floating and California Intermediate 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 Floating with a short position of California Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Floating and California Intermediate.
Diversification Opportunities for Pimco Floating and California Intermediate
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pimco and California is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Floating Income and California Intermediate Munici in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on California Intermediate and Pimco Floating 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 Floating Income are associated (or correlated) with California Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of California Intermediate has no effect on the direction of Pimco Floating i.e., Pimco Floating and California Intermediate go up and down completely randomly.
Pair Corralation between Pimco Floating and California Intermediate
Assuming the 90 days horizon Pimco Floating Income is expected to generate 1.22 times more return on investment than California Intermediate. However, Pimco Floating is 1.22 times more volatile than California Intermediate Municipal. It trades about 0.25 of its potential returns per unit of risk. California Intermediate Municipal is currently generating about 0.18 per unit of risk. If you would invest 803.00 in Pimco Floating Income on June 3, 2025 and sell it today you would earn a total of 21.00 from holding Pimco Floating Income or generate 2.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Floating Income vs. California Intermediate Munici
Performance |
| Timeline |
| Pimco Floating Income |
| California Intermediate |
Pimco Floating and California Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Floating and California Intermediate
The main advantage of trading using opposite Pimco Floating and California Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Floating position performs unexpectedly, California Intermediate 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 California Intermediate will offset losses from the drop in California Intermediate's long position.| Pimco Floating vs. Pimco Income Fund | Pimco Floating vs. Pimco Mortgage Opportunities | Pimco Floating vs. Short Term Fund Institutional | Pimco Floating vs. Pimco Foreign Bond |
| California Intermediate vs. Voya Government Money | California Intermediate vs. Matson Money Equity | California Intermediate vs. Aig Government Money | California Intermediate vs. Prudential 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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