Correlation Between James Balanced: and Pimco Long
Can any of the company-specific risk be diversified away by investing in both James Balanced: and Pimco Long 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 Long 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 Long Duration, you can compare the effects of market volatilities on James Balanced: and Pimco Long 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 Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of James Balanced: and Pimco Long.
Diversification Opportunities for James Balanced: and Pimco Long
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JAMES and Pimco is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding James Balanced Golden and Pimco Long Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Long Duration 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 Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Long Duration has no effect on the direction of James Balanced: i.e., James Balanced: and Pimco Long go up and down completely randomly.
Pair Corralation between James Balanced: and Pimco Long
Assuming the 90 days horizon James Balanced Golden is expected to generate 0.8 times more return on investment than Pimco Long. However, James Balanced Golden is 1.26 times less risky than Pimco Long. It trades about 0.25 of its potential returns per unit of risk. Pimco Long Duration is currently generating about 0.04 per unit of risk. If you would invest 2,223 in James Balanced Golden on November 3, 2024 and sell it today you would earn a total of 58.00 from holding James Balanced Golden or generate 2.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
James Balanced Golden vs. Pimco Long Duration
Performance |
| Timeline |
| James Balanced Golden |
| Pimco Long Duration |
James Balanced: and Pimco Long Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with James Balanced: and Pimco Long
The main advantage of trading using opposite James Balanced: and Pimco Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if James Balanced: position performs unexpectedly, Pimco Long 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 Long will offset losses from the drop in Pimco Long's long position.| James Balanced: vs. Permanent Portfolio Class | James Balanced: vs. Berwyn Income Fund | James Balanced: vs. Large Cap Fund | James Balanced: vs. Westcore Plus Bond |
| Pimco Long vs. Pimco Rae Worldwide | Pimco Long vs. Pimco Rae Worldwide | Pimco Long vs. Pimco Rae Worldwide | Pimco Long vs. Pimco Rae Worldwide |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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