Correlation Between Pimco Inflation and All Asset
Can any of the company-specific risk be diversified away by investing in both Pimco Inflation 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 Inflation 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 Inflation Response and All Asset Fund, you can compare the effects of market volatilities on Pimco Inflation 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 Inflation with a short position of All Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Inflation and All Asset.
Diversification Opportunities for Pimco Inflation and All Asset
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pimco and All is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Inflation Response 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 Inflation 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 Inflation Response 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 Inflation i.e., Pimco Inflation and All Asset go up and down completely randomly.
Pair Corralation between Pimco Inflation and All Asset
Assuming the 90 days horizon Pimco Inflation Response is expected to generate 0.85 times more return on investment than All Asset. However, Pimco Inflation Response is 1.18 times less risky than All Asset. It trades about 0.24 of its potential returns per unit of risk. All Asset Fund is currently generating about 0.17 per unit of risk. If you would invest 853.00 in Pimco Inflation Response on May 29, 2025 and sell it today you would earn a total of 39.00 from holding Pimco Inflation Response or generate 4.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.41% |
| Values | Daily Returns |
Pimco Inflation Response vs. All Asset Fund
Performance |
| Timeline |
| Pimco Inflation Response |
| All Asset Fund |
Pimco Inflation and All Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Inflation and All Asset
The main advantage of trading using opposite Pimco Inflation and All Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Inflation 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 Inflation vs. Dreyfus Short Intermediate | Pimco Inflation vs. Chartwell Short Duration | Pimco Inflation vs. Aamhimco Short Duration | Pimco Inflation vs. Astor Longshort Fund |
| All Asset vs. Qs Moderate Growth | All Asset vs. Pnc Balanced Allocation | All Asset vs. Rational Strategic Allocation | All Asset vs. Tax Managed Large 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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