Correlation Between PIMCO Global and PIMCO Managed

Can any of the company-specific risk be diversified away by investing in both PIMCO Global and PIMCO Managed 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 Global and PIMCO Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PIMCO Global Short and PIMCO Managed Core, you can compare the effects of market volatilities on PIMCO Global and PIMCO Managed 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 Global with a short position of PIMCO Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of PIMCO Global and PIMCO Managed.

Diversification Opportunities for PIMCO Global and PIMCO Managed

0.59

Correlation Coefficient

PIMCO Global  PIMCO Managed

Very weak diversification

The 3 months correlation between PIMCO and PIMCO is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding PIMCO Global Short and PIMCO Managed Core in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PIMCO Managed Core and PIMCO Global 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 Global Short are associated (or correlated) with PIMCO Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PIMCO Managed Core has no effect on the direction of PIMCO Global i.e., PIMCO Global and PIMCO Managed go up and down completely randomly.

Pair Corralation between PIMCO Global and PIMCO Managed

Assuming the 90 days trading horizon PIMCO Global is expected to generate 1.81 times less return on investment than PIMCO Managed. But when comparing it to its historical volatility, PIMCO Global Short is 1.34 times less risky than PIMCO Managed. It trades about 0.06 of its potential returns per unit of risk. PIMCO Managed Core is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  1,771  in PIMCO Managed Core on April 21, 2025 and sell it today you would earn a total of  36.00  from holding PIMCO Managed Core or generate 2.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

PIMCO Global Short  vs.  PIMCO Managed Core

PIMCO Global Short

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in PIMCO Global Short are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, PIMCO Global is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

PIMCO Managed Core

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in PIMCO Managed Core are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, PIMCO Managed is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with PIMCO Global and PIMCO Managed

The main advantage of trading using opposite PIMCO Global and PIMCO Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PIMCO Global position performs unexpectedly, PIMCO Managed 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 Managed will offset losses from the drop in PIMCO Managed's long position.

The idea behind PIMCO Global Short and PIMCO Managed Core pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.