Correlation Between Main International and PIMCO Mortgage
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 Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Main International ETF vs. PIMCO Mortgage Backed Securiti
Performance |
Timeline |
Main International ETF |
PIMCO Mortgage Backed |
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.Main International vs. ADTRAN Inc | Main International vs. International Business Machines | Main International vs. Integrated Ventures | Main International vs. Harmonic |
PIMCO Mortgage vs. Columbia Diversified Fixed | PIMCO Mortgage vs. MFS Active Core | PIMCO Mortgage vs. Doubleline Etf Trust | PIMCO Mortgage vs. Virtus Newfleet ABSMBS |
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.
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