Correlation Between Pimco Global and Stocksplus
Can any of the company-specific risk be diversified away by investing in both Pimco Global and Stocksplus 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 Global and Stocksplus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Global Multi Asset and Stocksplus Tr Short, you can compare the effects of market volatilities on Pimco Global and Stocksplus 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 Global with a short position of Stocksplus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Global and Stocksplus.
Diversification Opportunities for Pimco Global and Stocksplus
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pimco and Stocksplus is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Global Multi Asset and Stocksplus Tr Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stocksplus Tr Short and Pimco Global 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 Global Multi Asset are associated (or correlated) with Stocksplus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stocksplus Tr Short has no effect on the direction of Pimco Global i.e., Pimco Global and Stocksplus go up and down completely randomly.
Pair Corralation between Pimco Global and Stocksplus
Assuming the 90 days horizon Pimco Global Multi Asset is expected to generate 0.53 times more return on investment than Stocksplus. However, Pimco Global Multi Asset is 1.88 times less risky than Stocksplus. It trades about 0.41 of its potential returns per unit of risk. Stocksplus Tr Short is currently generating about -0.27 per unit of risk. If you would invest 1,473 in Pimco Global Multi Asset on April 25, 2025 and sell it today you would earn a total of 145.00 from holding Pimco Global Multi Asset or generate 9.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 98.39% |
| Values | Daily Returns |
Pimco Global Multi Asset vs. Stocksplus Tr Short
Performance |
| Timeline |
| Pimco Global Multi |
| Stocksplus Tr Short |
Pimco Global and Stocksplus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Global and Stocksplus
The main advantage of trading using opposite Pimco Global and Stocksplus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Global position performs unexpectedly, Stocksplus 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 Stocksplus will offset losses from the drop in Stocksplus' long position.| Pimco Global vs. Gamco Natural Resources | Pimco Global vs. Thrivent Natural Resources | Pimco Global vs. Goehring Rozencwajg Resources | Pimco Global vs. Pimco Energy Tactical |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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