Correlation Between James Balanced and Pimco Total
Can any of the company-specific risk be diversified away by investing in both James Balanced and Pimco Total 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 Total 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 Total Return, you can compare the effects of market volatilities on James Balanced and Pimco Total 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 Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of James Balanced and Pimco Total.
Diversification Opportunities for James Balanced and Pimco Total
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between James and Pimco is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding James Balanced Golden and Pimco Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Total Return 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 Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Total Return has no effect on the direction of James Balanced i.e., James Balanced and Pimco Total go up and down completely randomly.
Pair Corralation between James Balanced and Pimco Total
Assuming the 90 days horizon James Balanced Golden is expected to generate 1.43 times more return on investment than Pimco Total. However, James Balanced is 1.43 times more volatile than Pimco Total Return. It trades about 0.06 of its potential returns per unit of risk. Pimco Total Return is currently generating about -0.07 per unit of risk. If you would invest 2,286 in James Balanced Golden on August 26, 2024 and sell it today you would earn a total of 13.00 from holding James Balanced Golden or generate 0.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
James Balanced Golden vs. Pimco Total Return
Performance |
| Timeline |
| James Balanced Golden |
| Pimco Total Return |
James Balanced and Pimco Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with James Balanced and Pimco Total
The main advantage of trading using opposite James Balanced and Pimco Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if James Balanced position performs unexpectedly, Pimco Total 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 Total will offset losses from the drop in Pimco Total'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 Total vs. Fidelity Advisor Gold | Pimco Total vs. The Gold Bullion | Pimco Total vs. Gamco Global Gold | Pimco Total vs. James Balanced Golden |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Stocks Directory Find actively traded stocks across global markets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |