Correlation Between SSgA and PIMCO 1
Can any of the company-specific risk be diversified away by investing in both SSgA and PIMCO 1 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 SSgA and PIMCO 1 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SSgA and PIMCO 1 5 Year, you can compare the effects of market volatilities on SSgA and PIMCO 1 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 SSgA with a short position of PIMCO 1. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSgA and PIMCO 1.
Diversification Opportunities for SSgA and PIMCO 1
Pay attention - limited upside
The 3 months correlation between SSgA and PIMCO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SSgA and PIMCO 1 5 Year in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PIMCO 1 5 and SSgA 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 SSgA are associated (or correlated) with PIMCO 1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PIMCO 1 5 has no effect on the direction of SSgA i.e., SSgA and PIMCO 1 go up and down completely randomly.
Pair Corralation between SSgA and PIMCO 1
If you would invest (100.00) in SSgA on January 26, 2024 and sell it today you would earn a total of 100.00 from holding SSgA or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
SSgA vs. PIMCO 1 5 Year
Performance |
Timeline |
SSgA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PIMCO 1 5 |
SSgA and PIMCO 1 Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SSgA and PIMCO 1
The main advantage of trading using opposite SSgA and PIMCO 1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSgA position performs unexpectedly, PIMCO 1 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 1 will offset losses from the drop in PIMCO 1's long position.SSgA vs. iShares iBoxx Investment | SSgA vs. iShares 1 3 Year | SSgA vs. iShares 7 10 Year | SSgA vs. iShares Core Aggregate |
PIMCO 1 vs. iShares iBoxx Investment | PIMCO 1 vs. iShares 1 3 Year | PIMCO 1 vs. iShares 7 10 Year | PIMCO 1 vs. iShares Core Aggregate |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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