Correlation Between PIMCO Mortgage and Fidelity MSCI
Can any of the company-specific risk be diversified away by investing in both PIMCO Mortgage and Fidelity MSCI 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 Mortgage and Fidelity MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PIMCO Mortgage Backed Securities and Fidelity MSCI Consumer, you can compare the effects of market volatilities on PIMCO Mortgage and Fidelity MSCI 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 Mortgage with a short position of Fidelity MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of PIMCO Mortgage and Fidelity MSCI.
Diversification Opportunities for PIMCO Mortgage and Fidelity MSCI
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between PIMCO and Fidelity is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding PIMCO Mortgage Backed Securiti and Fidelity MSCI Consumer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity MSCI Consumer and PIMCO Mortgage 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 Mortgage Backed Securities are associated (or correlated) with Fidelity MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity MSCI Consumer has no effect on the direction of PIMCO Mortgage i.e., PIMCO Mortgage and Fidelity MSCI go up and down completely randomly.
Pair Corralation between PIMCO Mortgage and Fidelity MSCI
Given the investment horizon of 90 days PIMCO Mortgage is expected to generate 5.88 times less return on investment than Fidelity MSCI. But when comparing it to its historical volatility, PIMCO Mortgage Backed Securities is 4.09 times less risky than Fidelity MSCI. It trades about 0.03 of its potential returns per unit of risk. Fidelity MSCI Consumer is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 7,439 in Fidelity MSCI Consumer on June 5, 2025 and sell it today you would earn a total of 2,523 from holding Fidelity MSCI Consumer or generate 33.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 47.98% |
| Values | Daily Returns |
PIMCO Mortgage Backed Securiti vs. Fidelity MSCI Consumer
Performance |
| Timeline |
| PIMCO Mortgage Backed |
| Fidelity MSCI Consumer |
PIMCO Mortgage and Fidelity MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PIMCO Mortgage and Fidelity MSCI
The main advantage of trading using opposite PIMCO Mortgage and Fidelity MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PIMCO Mortgage position performs unexpectedly, Fidelity MSCI 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 Fidelity MSCI will offset losses from the drop in Fidelity MSCI's long position.| PIMCO Mortgage vs. Valued Advisers Trust | PIMCO Mortgage vs. Columbia Diversified Fixed | PIMCO Mortgage vs. Principal Exchange Traded Funds | PIMCO Mortgage vs. MFS Active Core |
| Fidelity MSCI vs. Fidelity MSCI Consumer | Fidelity MSCI vs. Fidelity MSCI Industrials | Fidelity MSCI vs. Fidelity MSCI Financials | Fidelity MSCI vs. Fidelity MSCI Communication |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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