Correlation Between Main International and PIMCO Mortgage

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Main International and PIMCO Mortgage 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 Main International and PIMCO Mortgage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Main International ETF and PIMCO Mortgage Backed Securities, you can compare the effects of market volatilities on Main International and PIMCO Mortgage 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 Main International with a short position of PIMCO Mortgage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Main International and PIMCO Mortgage.

Diversification Opportunities for Main International and PIMCO Mortgage

0.36
  Correlation Coefficient

Weak diversification

The 3 months correlation between Main and PIMCO is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Main International ETF and PIMCO Mortgage Backed Securiti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PIMCO Mortgage Backed and Main International 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 Main International ETF are associated (or correlated) with PIMCO Mortgage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PIMCO Mortgage Backed has no effect on the direction of Main International i.e., Main International and PIMCO Mortgage go up and down completely randomly.

Pair Corralation between Main International and PIMCO Mortgage

Given the investment horizon of 90 days Main International ETF is expected to generate 2.03 times more return on investment than PIMCO Mortgage. However, Main International is 2.03 times more volatile than PIMCO Mortgage Backed Securities. It trades about 0.28 of its potential returns per unit of risk. PIMCO Mortgage Backed Securities is currently generating about 0.06 per unit of risk. If you would invest  2,367  in Main International ETF on April 25, 2025 and sell it today you would earn a total of  274.00  from holding Main International ETF or generate 11.58% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Main International ETF  vs.  PIMCO Mortgage Backed Securiti

 Performance 
       Timeline  
Main International ETF 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Main International ETF are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating basic indicators, Main International may actually be approaching a critical reversion point that can send shares even higher in August 2025.
PIMCO Mortgage Backed 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in PIMCO Mortgage Backed Securities are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable fundamental drivers, PIMCO Mortgage is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Main International and PIMCO Mortgage Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Main International and PIMCO Mortgage

The main advantage of trading using opposite Main International and PIMCO Mortgage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Main International position performs unexpectedly, PIMCO Mortgage 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 Mortgage will offset losses from the drop in PIMCO Mortgage's long position.
The idea behind Main International ETF and PIMCO Mortgage Backed Securities 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.
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.

Other Complementary Tools

Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals
Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.