Correlation Between Fundamental Indexplus and Pimco Floating
Can any of the company-specific risk be diversified away by investing in both Fundamental Indexplus and Pimco Floating 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 Fundamental Indexplus and Pimco Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fundamental Indexplus Tr and Pimco Floating Income, you can compare the effects of market volatilities on Fundamental Indexplus and Pimco Floating 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 Fundamental Indexplus with a short position of Pimco Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fundamental Indexplus and Pimco Floating.
Diversification Opportunities for Fundamental Indexplus and Pimco Floating
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fundamental and Pimco is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Fundamental Indexplus Tr and Pimco Floating Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Floating Income and Fundamental Indexplus 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 Fundamental Indexplus Tr are associated (or correlated) with Pimco Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Floating Income has no effect on the direction of Fundamental Indexplus i.e., Fundamental Indexplus and Pimco Floating go up and down completely randomly.
Pair Corralation between Fundamental Indexplus and Pimco Floating
Assuming the 90 days horizon Fundamental Indexplus Tr is expected to generate 4.56 times more return on investment than Pimco Floating. However, Fundamental Indexplus is 4.56 times more volatile than Pimco Floating Income. It trades about 0.19 of its potential returns per unit of risk. Pimco Floating Income is currently generating about 0.28 per unit of risk. If you would invest 1,918 in Fundamental Indexplus Tr on June 6, 2025 and sell it today you would earn a total of 170.00 from holding Fundamental Indexplus Tr or generate 8.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fundamental Indexplus Tr vs. Pimco Floating Income
Performance |
| Timeline |
| Fundamental Indexplus |
| Pimco Floating Income |
Fundamental Indexplus and Pimco Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fundamental Indexplus and Pimco Floating
The main advantage of trading using opposite Fundamental Indexplus and Pimco Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fundamental Indexplus position performs unexpectedly, Pimco Floating 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 Pimco Floating will offset losses from the drop in Pimco Floating's long position.| Fundamental Indexplus vs. Pimco Em Fundamental | Fundamental Indexplus vs. Pimco Short Asset | Fundamental Indexplus vs. Pimco Small Cap | Fundamental Indexplus vs. Pimco International Stocksplus |
| Pimco Floating vs. Short Term Fund A | Pimco Floating vs. Pimco Income Fund | Pimco Floating vs. Pimco Foreign Bond | Pimco Floating vs. All Asset 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |