Correlation Between Pimco New and Platinum Asia
Can any of the company-specific risk be diversified away by investing in both Pimco New and Platinum Asia 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 New and Platinum Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco New York and Platinum Asia Investments, you can compare the effects of market volatilities on Pimco New and Platinum Asia 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 New with a short position of Platinum Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco New and Platinum Asia.
Diversification Opportunities for Pimco New and Platinum Asia
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pimco and Platinum is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Pimco New York and Platinum Asia Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platinum Asia Investments and Pimco New 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 New York are associated (or correlated) with Platinum Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Platinum Asia Investments has no effect on the direction of Pimco New i.e., Pimco New and Platinum Asia go up and down completely randomly.
Pair Corralation between Pimco New and Platinum Asia
Considering the 90-day investment horizon Pimco New York is expected to under-perform the Platinum Asia. But the fund apears to be less risky and, when comparing its historical volatility, Pimco New York is 1.8 times less risky than Platinum Asia. The fund trades about -0.06 of its potential returns per unit of risk. The Platinum Asia Investments is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,250 in Platinum Asia Investments on August 28, 2024 and sell it today you would lose (1.00) from holding Platinum Asia Investments or give up 0.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco New York vs. Platinum Asia Investments
Performance |
| Timeline |
| Pimco New York |
| Platinum Asia Investments |
Pimco New and Platinum Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco New and Platinum Asia
The main advantage of trading using opposite Pimco New and Platinum Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco New position performs unexpectedly, Platinum Asia 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 Platinum Asia will offset losses from the drop in Platinum Asia's long position.| Pimco New vs. Invesco Pennsylvania Value | Pimco New vs. Blackrock Muniholdings Ny | Pimco New vs. Eaton Vance National | Pimco New vs. Nuveen New York |
| Platinum Asia vs. The Gabelli Dividend | Platinum Asia vs. Voya Global Advantage | Platinum Asia vs. Invesco California Value | Platinum Asia vs. John Hancock Investors |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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