Correlation Between Pimco Global and Fundamental Indexplus
Can any of the company-specific risk be diversified away by investing in both Pimco Global and Fundamental Indexplus 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 Fundamental Indexplus 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 Fundamental Indexplus Tr, you can compare the effects of market volatilities on Pimco Global and Fundamental Indexplus 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 Fundamental Indexplus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Global and Fundamental Indexplus.
Diversification Opportunities for Pimco Global and Fundamental Indexplus
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Pimco and Fundamental is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Global Multi Asset and Fundamental Indexplus Tr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fundamental Indexplus 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 Fundamental Indexplus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fundamental Indexplus has no effect on the direction of Pimco Global i.e., Pimco Global and Fundamental Indexplus go up and down completely randomly.
Pair Corralation between Pimco Global and Fundamental Indexplus
Assuming the 90 days horizon Pimco Global is expected to generate 2.37 times less return on investment than Fundamental Indexplus. But when comparing it to its historical volatility, Pimco Global Multi Asset is 2.26 times less risky than Fundamental Indexplus. It trades about 0.26 of its potential returns per unit of risk. Fundamental Indexplus Tr is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 2,001 in Fundamental Indexplus Tr on May 31, 2025 and sell it today you would earn a total of 102.00 from holding Fundamental Indexplus Tr or generate 5.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Pimco Global Multi Asset vs. Fundamental Indexplus Tr
Performance |
| Timeline |
| Pimco Global Multi |
| Fundamental Indexplus |
Pimco Global and Fundamental Indexplus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Global and Fundamental Indexplus
The main advantage of trading using opposite Pimco Global and Fundamental Indexplus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Global position performs unexpectedly, Fundamental Indexplus 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 Fundamental Indexplus will offset losses from the drop in Fundamental Indexplus' long position.| Pimco Global vs. Mesirow Financial Small | Pimco Global vs. Transamerica Financial Life | Pimco Global vs. Fidelity Advisor Financial | Pimco Global vs. Gabelli Global Financial |
| Fundamental Indexplus vs. Pimco Em Fundamental | Fundamental Indexplus vs. Pimco Short Asset | Fundamental Indexplus vs. Pimco Small Cap | Fundamental Indexplus vs. Pimco International Stocksplus |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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