Correlation Between Pimco Income and Kinetics Multi
Can any of the company-specific risk be diversified away by investing in both Pimco Income and Kinetics Multi 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 Income and Kinetics Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Income Fund and Kinetics Multi Disciplinary Income, you can compare the effects of market volatilities on Pimco Income and Kinetics Multi 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 Income with a short position of Kinetics Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Income and Kinetics Multi.
Diversification Opportunities for Pimco Income and Kinetics Multi
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Pimco and Kinetics is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Income Fund and Kinetics Multi Disciplinary In in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetics Multi Disci and Pimco Income 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 Income Fund are associated (or correlated) with Kinetics Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinetics Multi Disci has no effect on the direction of Pimco Income i.e., Pimco Income and Kinetics Multi go up and down completely randomly.
Pair Corralation between Pimco Income and Kinetics Multi
Assuming the 90 days horizon Pimco Income Fund is expected to generate 6.94 times more return on investment than Kinetics Multi. However, Pimco Income is 6.94 times more volatile than Kinetics Multi Disciplinary Income. It trades about 0.23 of its potential returns per unit of risk. Kinetics Multi Disciplinary Income is currently generating about 0.48 per unit of risk. If you would invest 1,041 in Pimco Income Fund on May 26, 2025 and sell it today you would earn a total of 43.00 from holding Pimco Income Fund or generate 4.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Income Fund vs. Kinetics Multi Disciplinary In
Performance |
| Timeline |
| Pimco Income |
| Kinetics Multi Disci |
Pimco Income and Kinetics Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Income and Kinetics Multi
The main advantage of trading using opposite Pimco Income and Kinetics Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Income position performs unexpectedly, Kinetics Multi 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 Kinetics Multi will offset losses from the drop in Kinetics Multi's long position.| Pimco Income vs. Western Asset Short | Pimco Income vs. Astor Longshort Fund | Pimco Income vs. American Funds Tax Exempt | Pimco Income vs. Lord Abbett Short |
| Kinetics Multi vs. Kinetics Market Opportunities | Kinetics Multi vs. Kinetics Small Cap | Kinetics Multi vs. Kinetics Global Fund | Kinetics Multi vs. Kinetics Paradigm Fund |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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