Correlation Between Pimco International and Long Term
Can any of the company-specific risk be diversified away by investing in both Pimco International and Long Term 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 International and Long Term into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco International Bond and Long Term Government Fund, you can compare the effects of market volatilities on Pimco International and Long Term 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 International with a short position of Long Term. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco International and Long Term.
Diversification Opportunities for Pimco International and Long Term
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pimco and Long is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Pimco International Bond and Long Term Government Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Long Term Government and Pimco International 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 International Bond are associated (or correlated) with Long Term. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Long Term Government has no effect on the direction of Pimco International i.e., Pimco International and Long Term go up and down completely randomly.
Pair Corralation between Pimco International and Long Term
Assuming the 90 days horizon Pimco International Bond is expected to generate 0.61 times more return on investment than Long Term. However, Pimco International Bond is 1.63 times less risky than Long Term. It trades about 0.18 of its potential returns per unit of risk. Long Term Government Fund is currently generating about -0.04 per unit of risk. If you would invest 748.00 in Pimco International Bond on March 31, 2025 and sell it today you would earn a total of 48.00 from holding Pimco International Bond or generate 6.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco International Bond vs. Long Term Government Fund
Performance |
| Timeline |
| Pimco International Bond |
| Long Term Government |
Pimco International and Long Term Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco International and Long Term
The main advantage of trading using opposite Pimco International and Long Term positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco International position performs unexpectedly, Long Term 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 Long Term will offset losses from the drop in Long Term's long position.| Pimco International vs. Touchstone Sands Capital | Pimco International vs. Calvert Emerging Markets | Pimco International vs. Rbc Emerging Markets | Pimco International vs. Vanguard Emerging Markets |
| Long Term vs. Ab Government Exchange | Long Term vs. Cref Money Market | Long Term vs. Principal Fds Money | Long Term 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |