Correlation Between PIMCO Short and Jungfraubahn Holding

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

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

Diversification Opportunities for PIMCO Short and Jungfraubahn Holding

0.83

Correlation Coefficient

PIMCO Short  Jungfraubahn Holding

Very poor diversification

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

Pair Corralation between PIMCO Short and Jungfraubahn Holding

Assuming the 90 days trading horizon PIMCO Short is expected to generate 2.97 times less return on investment than Jungfraubahn Holding. But when comparing it to its historical volatility, PIMCO Short Term High is 5.29 times less risky than Jungfraubahn Holding. It trades about 0.29 of its potential returns per unit of risk. Jungfraubahn Holding AG is currently generating about 0.16 of returns per unit of risk over similar time horizon. 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

PIMCO Short Term High  vs.  Jungfraubahn Holding AG

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 23 (%) 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.

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.

Pair Trading with PIMCO Short and Jungfraubahn Holding

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

The idea behind PIMCO Short Term High and Jungfraubahn Holding AG 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.

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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.