Correlation Between Bank of New York and Pimco Corporate
Can any of the company-specific risk be diversified away by investing in both Bank of New York and Pimco Corporate 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 Bank of New York and Pimco Corporate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of New and Pimco Corporate Income, you can compare the effects of market volatilities on Bank of New York and Pimco Corporate 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 Bank of New York with a short position of Pimco Corporate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of New York and Pimco Corporate.
Diversification Opportunities for Bank of New York and Pimco Corporate
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bank and Pimco is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Bank of New and Pimco Corporate Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Corporate Income and Bank of New York 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 Bank of New are associated (or correlated) with Pimco Corporate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Corporate Income has no effect on the direction of Bank of New York i.e., Bank of New York and Pimco Corporate go up and down completely randomly.
Pair Corralation between Bank of New York and Pimco Corporate
Allowing for the 90-day total investment horizon Bank of New York is expected to generate 1.03 times less return on investment than Pimco Corporate. In addition to that, Bank of New York is 1.17 times more volatile than Pimco Corporate Income. It trades about 0.25 of its total potential returns per unit of risk. Pimco Corporate Income is currently generating about 0.3 per unit of volatility. If you would invest 1,368 in Pimco Corporate Income on February 21, 2024 and sell it today you would earn a total of 55.00 from holding Pimco Corporate Income or generate 4.02% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Bank of New vs. Pimco Corporate Income
Performance |
Timeline |
Bank of New York |
Pimco Corporate Income |
Bank of New York and Pimco Corporate Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank of New York and Pimco Corporate
The main advantage of trading using opposite Bank of New York and Pimco Corporate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of New York position performs unexpectedly, Pimco Corporate 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 Corporate will offset losses from the drop in Pimco Corporate's long position.Bank of New York vs. Invesco Plc | Bank of New York vs. Franklin Resources | Bank of New York vs. T Rowe Price | Bank of New York vs. SEI Investments |
Pimco Corporate vs. Flaherty Crumrine Preferred | Pimco Corporate vs. Flaherty Crumrine Total | Pimco Corporate vs. Calamos Dynamic Convertible | Pimco Corporate vs. Blackrock Resources Commodities |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |