Correlation Between Pimco Income and Mondrian International
Can any of the company-specific risk be diversified away by investing in both Pimco Income and Mondrian International 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 Mondrian International 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 Mondrian International Value, you can compare the effects of market volatilities on Pimco Income and Mondrian International 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 Mondrian International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Income and Mondrian International.
Diversification Opportunities for Pimco Income and Mondrian International
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pimco and Mondrian is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Income Fund and Mondrian International Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mondrian International 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 Mondrian International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mondrian International has no effect on the direction of Pimco Income i.e., Pimco Income and Mondrian International go up and down completely randomly.
Pair Corralation between Pimco Income and Mondrian International
Assuming the 90 days horizon Pimco Income is expected to generate 1.93 times less return on investment than Mondrian International. But when comparing it to its historical volatility, Pimco Income Fund is 5.2 times less risky than Mondrian International. It trades about 0.22 of its potential returns per unit of risk. Mondrian International Value is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,692 in Mondrian International Value on October 9, 2025 and sell it today you would earn a total of 67.00 from holding Mondrian International Value or generate 3.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Income Fund vs. Mondrian International Value
Performance |
| Timeline |
| Pimco Income |
| Mondrian International |
Pimco Income and Mondrian International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Income and Mondrian International
The main advantage of trading using opposite Pimco Income and Mondrian International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Income position performs unexpectedly, Mondrian International 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 Mondrian International will offset losses from the drop in Mondrian International's long position.| Pimco Income vs. Fidelity Contrafund | Pimco Income vs. New Perspective Fund | Pimco Income vs. Vanguard Developed Markets | Pimco Income vs. American Balanced Fund |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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