Correlation Between Summit Global and Pimco International

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Summit Global and Pimco 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 Summit Global and Pimco International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Summit Global Investments and Pimco International Bond, you can compare the effects of market volatilities on Summit Global and Pimco 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 Summit Global with a short position of Pimco International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Global and Pimco International.

Diversification Opportunities for Summit Global and Pimco International

0.44
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Summit and Pimco is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Summit Global Investments and Pimco International Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco International Bond and Summit 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 Summit Global Investments are associated (or correlated) with Pimco International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco International Bond has no effect on the direction of Summit Global i.e., Summit Global and Pimco International go up and down completely randomly.

Pair Corralation between Summit Global and Pimco International

Assuming the 90 days horizon Summit Global Investments is expected to generate 4.62 times more return on investment than Pimco International. However, Summit Global is 4.62 times more volatile than Pimco International Bond. It trades about 0.08 of its potential returns per unit of risk. Pimco International Bond is currently generating about 0.16 per unit of risk. If you would invest  1,719  in Summit Global Investments on September 4, 2025 and sell it today you would earn a total of  48.00  from holding Summit Global Investments or generate 2.79% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy98.44%
ValuesDaily Returns

Summit Global Investments  vs.  Pimco International Bond

 Performance 
       Timeline  
Summit Global Investments 

Risk-Adjusted Performance

Mild

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Summit Global Investments are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Summit Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Pimco International Bond 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Pimco International Bond are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Pimco International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Summit Global and Pimco International Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Summit Global and Pimco International

The main advantage of trading using opposite Summit Global and Pimco International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Global position performs unexpectedly, Pimco 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 Pimco International will offset losses from the drop in Pimco International's long position.
The idea behind Summit Global Investments and Pimco International Bond pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

Other Complementary Tools

Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments