Correlation Between James Balanced: and Pimco International
Can any of the company-specific risk be diversified away by investing in both James Balanced: and Pimco International 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 James Balanced: and Pimco International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between James Balanced Golden and Pimco International Bond, you can compare the effects of market volatilities on James Balanced: and Pimco International 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 James Balanced: with a short position of Pimco International. Check out your portfolio center. Please also check ongoing floating volatility patterns of James Balanced: and Pimco International.
Diversification Opportunities for James Balanced: and Pimco International
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between James and Pimco is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding James Balanced Golden and Pimco International Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco International Bond and James Balanced: 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 James Balanced Golden are associated (or correlated) with Pimco International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco International Bond has no effect on the direction of James Balanced: i.e., James Balanced: and Pimco International go up and down completely randomly.
Pair Corralation between James Balanced: and Pimco International
Assuming the 90 days horizon James Balanced Golden is expected to generate 0.79 times more return on investment than Pimco International. However, James Balanced Golden is 1.26 times less risky than Pimco International. It trades about 0.35 of its potential returns per unit of risk. Pimco International Bond is currently generating about -0.01 per unit of risk. If you would invest 2,262 in James Balanced Golden on September 1, 2024 and sell it today you would earn a total of 66.00 from holding James Balanced Golden or generate 2.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
James Balanced Golden vs. Pimco International Bond
Performance |
| Timeline |
| James Balanced Golden |
| Pimco International Bond |
James Balanced: and Pimco International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with James Balanced: and Pimco International
The main advantage of trading using opposite James Balanced: and Pimco International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if James Balanced: position performs unexpectedly, Pimco International 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 International will offset losses from the drop in Pimco International's long position.| James Balanced: vs. Permanent Portfolio Class | James Balanced: vs. Berwyn Income Fund | James Balanced: vs. Fpa Crescent Fund | James Balanced: vs. Aquagold International |
| Pimco International vs. James Balanced Golden | Pimco International vs. Oppenheimer Gold Special | Pimco International vs. Short Precious Metals | Pimco International vs. Precious Metals And |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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