Correlation Between Pimco Capital and Simt Large

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

By analyzing existing cross correlation between Pimco Capital Sec and Simt Large Cap, you can compare the effects of market volatilities on Pimco Capital and Simt Large 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 Capital with a short position of Simt Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Capital and Simt Large.

Diversification Opportunities for Pimco Capital and Simt Large

0.97

Correlation Coefficient

Pimco Capital  Simt Large

Almost no diversification

The 3 months correlation between Pimco and Simt is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Capital Sec and Simt Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Large Cap and Pimco Capital 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 Capital Sec are associated (or correlated) with Simt Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Large Cap has no effect on the direction of Pimco Capital i.e., Pimco Capital and Simt Large go up and down completely randomly.

Pair Corralation between Pimco Capital and Simt Large

Assuming the 90 days horizon Pimco Capital is expected to generate 2.39 times less return on investment than Simt Large. But when comparing it to its historical volatility, Pimco Capital Sec is 5.43 times less risky than Simt Large. It trades about 0.57 of its potential returns per unit of risk. Simt Large Cap is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  1,457  in Simt Large Cap on May 21, 2025 and sell it today you would earn a total of  147.00  from holding Simt Large Cap or generate 10.09% return on investment over 90 days.

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

Pimco Capital Sec  vs.  Simt Large Cap

Pimco Capital Sec

Risk-Adjusted Performance

High

Compared to the overall equity markets, risk-adjusted returns on investments in Pimco Capital Sec are ranked lower than 44 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Pimco Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Simt Large Cap

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Simt Large Cap are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Simt Large may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Pimco Capital and Simt Large

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

The idea behind Pimco Capital Sec and Simt Large Cap 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.