Correlation Between Pimco New and Korea Closed
Can any of the company-specific risk be diversified away by investing in both Pimco New and Korea Closed 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 Korea Closed 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 Korea Closed, you can compare the effects of market volatilities on Pimco New and Korea Closed 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 Korea Closed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco New and Korea Closed.
Diversification Opportunities for Pimco New and Korea Closed
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Pimco and Korea is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Pimco New York and Korea Closed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Closed 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 Korea Closed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Closed has no effect on the direction of Pimco New i.e., Pimco New and Korea Closed go up and down completely randomly.
Pair Corralation between Pimco New and Korea Closed
Considering the 90-day investment horizon Pimco New York is expected to generate 0.45 times more return on investment than Korea Closed. However, Pimco New York is 2.21 times less risky than Korea Closed. It trades about 0.01 of its potential returns per unit of risk. Korea Closed is currently generating about -0.17 per unit of risk. If you would invest 595.00 in Pimco New York on August 30, 2024 and sell it today you would earn a total of 1.00 from holding Pimco New York or generate 0.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco New York vs. Korea Closed
Performance |
| Timeline |
| Pimco New York |
| Korea Closed |
Pimco New and Korea Closed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco New and Korea Closed
The main advantage of trading using opposite Pimco New and Korea Closed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco New position performs unexpectedly, Korea Closed 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 Korea Closed will offset losses from the drop in Korea Closed's long position.| Pimco New vs. Gabelli Global Small | Pimco New vs. MFS Investment Grade | Pimco New vs. Eaton Vance National | Pimco New vs. GAMCO Natural Resources |
| Korea Closed vs. Mexico Equity And | Korea Closed vs. Western Asset Global | Korea Closed vs. New Germany Closed | Korea Closed vs. MFS Charter Income |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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