Correlation Between Pimco Inflation and Moderately Aggressive
Can any of the company-specific risk be diversified away by investing in both Pimco Inflation and Moderately Aggressive 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 Moderately Aggressive 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 Moderately Aggressive Balanced, you can compare the effects of market volatilities on Pimco Inflation and Moderately Aggressive 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 Moderately Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Inflation and Moderately Aggressive.
Diversification Opportunities for Pimco Inflation and Moderately Aggressive
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Pimco and Moderately is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Inflation Response and Moderately Aggressive Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moderately Aggressive 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 Moderately Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moderately Aggressive has no effect on the direction of Pimco Inflation i.e., Pimco Inflation and Moderately Aggressive go up and down completely randomly.
Pair Corralation between Pimco Inflation and Moderately Aggressive
Assuming the 90 days horizon Pimco Inflation is expected to generate 1.09 times less return on investment than Moderately Aggressive. But when comparing it to its historical volatility, Pimco Inflation Response is 1.54 times less risky than Moderately Aggressive. It trades about 0.26 of its potential returns per unit of risk. Moderately Aggressive Balanced is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,208 in Moderately Aggressive Balanced on June 5, 2025 and sell it today you would earn a total of 63.00 from holding Moderately Aggressive Balanced or generate 5.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.39% |
| Values | Daily Returns |
Pimco Inflation Response vs. Moderately Aggressive Balanced
Performance |
| Timeline |
| Pimco Inflation Response |
| Moderately Aggressive |
Pimco Inflation and Moderately Aggressive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Inflation and Moderately Aggressive
The main advantage of trading using opposite Pimco Inflation and Moderately Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Inflation position performs unexpectedly, Moderately Aggressive 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 Moderately Aggressive will offset losses from the drop in Moderately Aggressive's long position.| Pimco Inflation vs. Ab Global Risk | Pimco Inflation vs. Ab Global Risk | Pimco Inflation vs. Dws Global Macro | Pimco Inflation vs. Calvert Global Energy |
| Moderately Aggressive vs. Putnam Global Financials | Moderately Aggressive vs. John Hancock Financial | Moderately Aggressive vs. Davis Financial Fund | Moderately Aggressive vs. Transamerica Financial Life |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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