Correlation Between Amg River and Pimco Preferred
Can any of the company-specific risk be diversified away by investing in both Amg River and Pimco Preferred 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 Amg River and Pimco Preferred into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg River Road and Pimco Preferred And, you can compare the effects of market volatilities on Amg River and Pimco Preferred 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 Amg River with a short position of Pimco Preferred. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg River and Pimco Preferred.
Diversification Opportunities for Amg River and Pimco Preferred
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amg and Pimco is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Amg River Road and Pimco Preferred And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Preferred And and Amg River 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 Amg River Road are associated (or correlated) with Pimco Preferred. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Preferred And has no effect on the direction of Amg River i.e., Amg River and Pimco Preferred go up and down completely randomly.
Pair Corralation between Amg River and Pimco Preferred
Assuming the 90 days horizon Amg River Road is expected to generate 8.07 times more return on investment than Pimco Preferred. However, Amg River is 8.07 times more volatile than Pimco Preferred And. It trades about 0.42 of its potential returns per unit of risk. Pimco Preferred And is currently generating about 0.16 per unit of risk. If you would invest 1,009 in Amg River Road on September 1, 2024 and sell it today you would earn a total of 112.00 from holding Amg River Road or generate 11.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Amg River Road vs. Pimco Preferred And
Performance |
| Timeline |
| Amg River Road |
| Pimco Preferred And |
Amg River and Pimco Preferred Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg River and Pimco Preferred
The main advantage of trading using opposite Amg River and Pimco Preferred positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg River position performs unexpectedly, Pimco Preferred 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 Preferred will offset losses from the drop in Pimco Preferred's long position.| Amg River vs. Amg River Road | Amg River vs. Champlain Small Pany | Amg River vs. Amg River Road | Amg River vs. Marsico Global Fund |
| Pimco Preferred vs. Nuveen Preferred Securities | Pimco Preferred vs. Cohen Steers Preferd | Pimco Preferred vs. Pimco Income Fund | Pimco Preferred vs. Pimco Floating Income |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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