Correlation Between Pimco High and New York
Can any of the company-specific risk be diversified away by investing in both Pimco High and New York 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 New York into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco High Yield and New York Municipal, you can compare the effects of market volatilities on Pimco High and New York 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 New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco High and New York.
Diversification Opportunities for Pimco High and New York
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between PIMCO and New is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Pimco High Yield and New York Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New York Municipal 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 Yield are associated (or correlated) with New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New York Municipal has no effect on the direction of Pimco High i.e., Pimco High and New York go up and down completely randomly.
Pair Corralation between Pimco High and New York
Assuming the 90 days horizon Pimco High Yield is expected to generate 1.22 times more return on investment than New York. However, Pimco High is 1.22 times more volatile than New York Municipal. It trades about 0.1 of its potential returns per unit of risk. New York Municipal is currently generating about 0.09 per unit of risk. If you would invest 775.00 in Pimco High Yield on August 31, 2024 and sell it today you would earn a total of 88.00 from holding Pimco High Yield or generate 11.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.73% |
| Values | Daily Returns |
Pimco High Yield vs. New York Municipal
Performance |
| Timeline |
| Pimco High Yield |
| New York Municipal |
Pimco High and New York Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco High and New York
The main advantage of trading using opposite Pimco High and New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco High position performs unexpectedly, New York 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 New York will offset losses from the drop in New York's long position.| Pimco High vs. Municipal Bond Fund | Pimco High vs. Nuveen High Yield | Pimco High vs. Pimco Mortgage Opportunities | Pimco High vs. Pimco Income Fund |
| New York vs. Pimco High Yield | New York vs. Municipal Bond Fund | New York vs. Pimco Floating Income | New York vs. Investment Grade Porate |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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