Correlation Between PIMCO 1 and IMFI
Can any of the company-specific risk be diversified away by investing in both PIMCO 1 and IMFI 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 1 and IMFI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PIMCO 1 5 Year and IMFI, you can compare the effects of market volatilities on PIMCO 1 and IMFI 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 1 with a short position of IMFI. Check out your portfolio center. Please also check ongoing floating volatility patterns of PIMCO 1 and IMFI.
Diversification Opportunities for PIMCO 1 and IMFI
Pay attention - limited upside
The 3 months correlation between PIMCO and IMFI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PIMCO 1 5 Year and IMFI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IMFI and PIMCO 1 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 1 5 Year are associated (or correlated) with IMFI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IMFI has no effect on the direction of PIMCO 1 i.e., PIMCO 1 and IMFI go up and down completely randomly.
Pair Corralation between PIMCO 1 and IMFI
If you would invest 5,132 in PIMCO 1 5 Year on February 4, 2024 and sell it today you would earn a total of 5.00 from holding PIMCO 1 5 Year or generate 0.1% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
PIMCO 1 5 Year vs. IMFI
Performance |
Timeline |
PIMCO 1 5 |
IMFI |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PIMCO 1 and IMFI Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PIMCO 1 and IMFI
The main advantage of trading using opposite PIMCO 1 and IMFI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PIMCO 1 position performs unexpectedly, IMFI 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 IMFI will offset losses from the drop in IMFI's long position.PIMCO 1 vs. PIMCO Broad TIPS | PIMCO 1 vs. PIMCO 15 Year | PIMCO 1 vs. SPDR FTSE International | PIMCO 1 vs. FlexShares iBoxx 5 Year |
IMFI vs. Vanguard Total Stock | IMFI vs. SPDR SP 500 | IMFI vs. iShares Core SP | IMFI vs. Vanguard Total Bond |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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