Correlation Between Pimco Floating and Commodityrealreturn
Can any of the company-specific risk be diversified away by investing in both Pimco Floating and Commodityrealreturn 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 Commodityrealreturn 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 Commodityrealreturn Strategy Fund, you can compare the effects of market volatilities on Pimco Floating and Commodityrealreturn 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 Commodityrealreturn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Floating and Commodityrealreturn.
Diversification Opportunities for Pimco Floating and Commodityrealreturn
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pimco and Commodityrealreturn is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Floating Income and Commodityrealreturn Strategy F in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commodityrealreturn 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 Commodityrealreturn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commodityrealreturn has no effect on the direction of Pimco Floating i.e., Pimco Floating and Commodityrealreturn go up and down completely randomly.
Pair Corralation between Pimco Floating and Commodityrealreturn
Assuming the 90 days horizon Pimco Floating is expected to generate 1.1 times less return on investment than Commodityrealreturn. But when comparing it to its historical volatility, Pimco Floating Income is 4.51 times less risky than Commodityrealreturn. It trades about 0.21 of its potential returns per unit of risk. Commodityrealreturn Strategy Fund is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,213 in Commodityrealreturn Strategy Fund on April 26, 2025 and sell it today you would earn a total of 28.00 from holding Commodityrealreturn Strategy Fund or generate 2.31% 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. Commodityrealreturn Strategy F
Performance |
| Timeline |
| Pimco Floating Income |
| Commodityrealreturn |
Pimco Floating and Commodityrealreturn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Floating and Commodityrealreturn
The main advantage of trading using opposite Pimco Floating and Commodityrealreturn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Floating position performs unexpectedly, Commodityrealreturn 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 Commodityrealreturn will offset losses from the drop in Commodityrealreturn's long position.| Pimco Floating vs. Short Term Fund A | Pimco Floating vs. Pimco Income Fund | Pimco Floating vs. Pimco Foreign Bond | Pimco Floating vs. All Asset Fund |
| Commodityrealreturn vs. Goldman Sachs Small | Commodityrealreturn vs. Ab Small Cap | Commodityrealreturn vs. Eagle Small Cap | Commodityrealreturn vs. Needham Small Cap |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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