Correlation Between Pimco High and Gabelli Dividend

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

By analyzing existing cross correlation between Pimco High Income and Gabelli Dividend Income, you can compare the effects of market volatilities on Pimco High and Gabelli Dividend 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 High with a short position of Gabelli Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco High and Gabelli Dividend.

Diversification Opportunities for Pimco High and Gabelli Dividend

0.92

Correlation Coefficient

Pimco High  Gabelli Dividend

Almost no diversification

The 3 months correlation between Pimco and Gabelli is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Pimco High Income and Gabelli Dividend Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Dividend Income and Pimco High 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 High Income are associated (or correlated) with Gabelli Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Dividend Income has no effect on the direction of Pimco High i.e., Pimco High and Gabelli Dividend go up and down completely randomly.

Pair Corralation between Pimco High and Gabelli Dividend

Considering the 90-day investment horizon Pimco High is expected to generate 1.72 times less return on investment than Gabelli Dividend. But when comparing it to its historical volatility, Pimco High Income is 2.16 times less risky than Gabelli Dividend. It trades about 0.26 of its potential returns per unit of risk. Gabelli Dividend Income is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  2,342  in Gabelli Dividend Income on May 6, 2025 and sell it today you would earn a total of  238.00  from holding Gabelli Dividend Income or generate 10.16% return on investment over 90 days.

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

Pimco High Income  vs.  Gabelli Dividend Income

Pimco High Income

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Pimco High Income are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. Despite quite persistent technical indicators, Pimco High is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Gabelli Dividend Income

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Gabelli Dividend Income are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Gabelli Dividend may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Pimco High and Gabelli Dividend

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

The idea behind Pimco High Income and Gabelli Dividend Income 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.