Correlation Between Jungfraubahn Holding and PIMCO Short

Can any of the company-specific risk be diversified away by investing in both Jungfraubahn Holding and PIMCO Short 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 Jungfraubahn Holding and PIMCO Short into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Jungfraubahn Holding AG and PIMCO Short Term High, you can compare the effects of market volatilities on Jungfraubahn Holding and PIMCO Short 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 Jungfraubahn Holding with a short position of PIMCO Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jungfraubahn Holding and PIMCO Short.

Diversification Opportunities for Jungfraubahn Holding and PIMCO Short

0.83

Correlation Coefficient

Jungfraubahn Holding  PIMCO Short

Very poor diversification

The 3 months correlation between Jungfraubahn and PIMCO is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Jungfraubahn Holding AG and PIMCO Short Term High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PIMCO Short Term and Jungfraubahn Holding 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 Jungfraubahn Holding AG are associated (or correlated) with PIMCO Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PIMCO Short Term has no effect on the direction of Jungfraubahn Holding i.e., Jungfraubahn Holding and PIMCO Short go up and down completely randomly.

Pair Corralation between Jungfraubahn Holding and PIMCO Short

Assuming the 90 days trading horizon Jungfraubahn Holding AG is expected to generate 5.29 times more return on investment than PIMCO Short. However, Jungfraubahn Holding is 5.29 times more volatile than PIMCO Short Term High. It trades about 0.16 of its potential returns per unit of risk. PIMCO Short Term High is currently generating about 0.29 per unit of risk. If you would invest  18,911  in Jungfraubahn Holding AG on April 24, 2025 and sell it today you would earn a total of  1,639  from holding Jungfraubahn Holding AG or generate 8.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Jungfraubahn Holding AG  vs.  PIMCO Short Term High

Jungfraubahn Holding

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jungfraubahn Holding AG are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Jungfraubahn Holding may actually be approaching a critical reversion point that can send shares even higher in August 2025.

PIMCO Short Term

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in PIMCO Short Term High are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, PIMCO Short is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Jungfraubahn Holding and PIMCO Short

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

The idea behind Jungfraubahn Holding AG and PIMCO Short Term High 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.