Correlation Between Valic Company and Pimco High
Can any of the company-specific risk be diversified away by investing in both Valic Company and Pimco High 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 Valic Company and Pimco High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Valic Company I and Pimco High Yield, you can compare the effects of market volatilities on Valic Company and Pimco High 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 Valic Company with a short position of Pimco High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valic Company and Pimco High.
Diversification Opportunities for Valic Company and Pimco High
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Valic and Pimco is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Valic Company I and Pimco High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco High Yield and Valic Company 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 Valic Company I are associated (or correlated) with Pimco High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco High Yield has no effect on the direction of Valic Company i.e., Valic Company and Pimco High go up and down completely randomly.
Pair Corralation between Valic Company and Pimco High
Assuming the 90 days horizon Valic Company I is expected to generate 5.33 times more return on investment than Pimco High. However, Valic Company is 5.33 times more volatile than Pimco High Yield. It trades about 0.08 of its potential returns per unit of risk. Pimco High Yield is currently generating about 0.36 per unit of risk. If you would invest 1,207 in Valic Company I on August 16, 2025 and sell it today you would earn a total of 65.00 from holding Valic Company I or generate 5.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valic Company I vs. Pimco High Yield
Performance |
| Timeline |
| Valic Company I |
| Pimco High Yield |
Valic Company and Pimco High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valic Company and Pimco High
The main advantage of trading using opposite Valic Company and Pimco High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valic Company position performs unexpectedly, Pimco High 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 High will offset losses from the drop in Pimco High's long position.| Valic Company vs. California High Yield Municipal | Valic Company vs. Tax Exempt High Yield | Valic Company vs. Oppenheimer Roc High | Valic Company vs. T Rowe Price |
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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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