Pimco Preferred Correlations

PFCJX Fund  USD 8.82  0.01  0.11%   
The correlation of Pimco Preferred is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Pimco Preferred moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Pimco Preferred And moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Very weak diversification

The correlation between Pimco Preferred And and NYA is 0.42 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Preferred And and NYA in the same portfolio, assuming nothing else is changed.
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Pimco Preferred And. Also, note that the market value of any mutual fund could be tightly coupled with the direction of predictive economic indicators such as signals in inflation.
  
The ability to find closely correlated positions to Pimco Preferred could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Pimco Preferred when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Pimco Preferred - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Pimco Preferred And to buy it.

Moving together with Pimco Mutual Fund

  0.92PWLEX Pimco Rae WorldwidePairCorr
  0.93PWLBX Pimco Rae WorldwidePairCorr
  0.93PWLMX Pimco Rae WorldwidePairCorr
  0.93PWLIX Pimco Rae WorldwidePairCorr
  0.91PFBPX Pimco Foreign BondPairCorr
  0.86PFATX Pimco FundamentalPairCorr
  1.0PFANX Pimco Capital SecPairCorr
  0.95PFIAX Pimco Floating MePairCorr
  0.95PFIIX Pimco Floating MePairCorr
  0.94PFIUX Pimco Unconstrained BondPairCorr
  1.0PFINX Pimco Capital SecPairCorr
  0.62PFMIX Municipal BondPairCorr
  0.94PFNCX Pimco Floating MePairCorr
  0.92PFONX Pimco International BondPairCorr
  0.91PFORX Pimco Foreign BondPairCorr
  1.0PFNNX Pimco Preferred AndPairCorr
  0.95PFNIX Pimco Low DurationPairCorr

Related Correlations Analysis

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.
High positive correlations   
PWLBXPWLEX
PWLMXPWLEX
PWLIXPWLEX
PWLMXPWLBX
PWLIXPWLBX
PWLIXPWLMX
  
High negative correlations   
PFGCXPFATX
PFGAXPFATX
PFGCXPFBPX
PFGAXPFBPX
PFGCXPWLIX
PFGCXPWLMX

Risk-Adjusted Indicators

There is a big difference between Pimco Mutual Fund performing well and Pimco Preferred Mutual Fund doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Pimco Preferred's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Pimco Preferred without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Already Invested in Pimco Preferred And?

The danger of trading Pimco Preferred And is mainly related to its market volatility and Mutual Fund specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Pimco Preferred is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Pimco Preferred. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Pimco Preferred And is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Pimco Preferred And. Also, note that the market value of any mutual fund could be tightly coupled with the direction of predictive economic indicators such as signals in inflation.
You can also try the Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Please note, there is a significant difference between Pimco Preferred's value and its price as these two are different measures arrived at by different means. Investors typically determine if Pimco Preferred is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Pimco Preferred's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.