Correlation Between SPDR Barclays and PIMCO Investment
Can any of the company-specific risk be diversified away by investing in both SPDR Barclays and PIMCO Investment 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 SPDR Barclays and PIMCO Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Barclays Intermediate and PIMCO Investment Grade, you can compare the effects of market volatilities on SPDR Barclays and PIMCO Investment 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 SPDR Barclays with a short position of PIMCO Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Barclays and PIMCO Investment.
Diversification Opportunities for SPDR Barclays and PIMCO Investment
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SPDR and PIMCO is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Barclays Intermediate and PIMCO Investment Grade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PIMCO Investment Grade and SPDR Barclays 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 SPDR Barclays Intermediate are associated (or correlated) with PIMCO Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PIMCO Investment Grade has no effect on the direction of SPDR Barclays i.e., SPDR Barclays and PIMCO Investment go up and down completely randomly.
Pair Corralation between SPDR Barclays and PIMCO Investment
Given the investment horizon of 90 days SPDR Barclays Intermediate is expected to generate 0.53 times more return on investment than PIMCO Investment. However, SPDR Barclays Intermediate is 1.88 times less risky than PIMCO Investment. It trades about -0.17 of its potential returns per unit of risk. PIMCO Investment Grade is currently generating about -0.13 per unit of risk. If you would invest 3,252 in SPDR Barclays Intermediate on January 25, 2024 and sell it today you would lose (32.00) from holding SPDR Barclays Intermediate or give up 0.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Barclays Intermediate vs. PIMCO Investment Grade
Performance |
| Timeline |
| SPDR Barclays Interm |
| PIMCO Investment Grade |
SPDR Barclays and PIMCO Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Barclays and PIMCO Investment
The main advantage of trading using opposite SPDR Barclays and PIMCO Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Barclays position performs unexpectedly, PIMCO Investment 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 Investment will offset losses from the drop in PIMCO Investment's long position.| SPDR Barclays vs. iShares iBonds 2026 | SPDR Barclays vs. iShares iBonds Dec | SPDR Barclays vs. iShares 25 Year |
| PIMCO Investment vs. iShares iBonds 2026 | PIMCO Investment vs. iShares iBonds Dec | PIMCO Investment vs. iShares 25 Year |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |