Correlation Between Winmill Co and Pimco New

Can any of the company-specific risk be diversified away by investing in both Winmill Co and Pimco New 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 Winmill Co and Pimco New into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Winmill Co Incorporated and Pimco New York, you can compare the effects of market volatilities on Winmill Co and Pimco New 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 Winmill Co with a short position of Pimco New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Winmill Co and Pimco New.

Diversification Opportunities for Winmill Co and Pimco New

-0.26

Correlation Coefficient

Winmill Co  Pimco New

Very good diversification

The 3 months correlation between Winmill and Pimco is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Winmill Co Incorporated and Pimco New York in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco New York and Winmill Co 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 Winmill Co Incorporated are associated (or correlated) with Pimco New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco New York has no effect on the direction of Winmill Co i.e., Winmill Co and Pimco New go up and down completely randomly.

Pair Corralation between Winmill Co and Pimco New

If you would invest  381.00  in Winmill Co Incorporated on August 25, 2024 and sell it today you would earn a total of  0.00  from holding Winmill Co Incorporated or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	4.55%
Values	Daily Returns

Winmill Co Incorporated  vs.  Pimco New York

Winmill Co

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Winmill Co Incorporated has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong essential indicators, Winmill Co is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pimco New York

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pimco New York has generated negative risk-adjusted returns adding no value to fund investors. In spite of very healthy basic indicators, Pimco New is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Winmill Co and Pimco New

The main advantage of trading using opposite Winmill Co and Pimco New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Winmill Co position performs unexpectedly, Pimco New 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 New will offset losses from the drop in Pimco New's long position.

The idea behind Winmill Co Incorporated and Pimco New York pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.