Correlation Between Pimco Dynamic and Gold Springs

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

By analyzing existing cross correlation between Pimco Dynamic Income and Gold Springs Resource, you can compare the effects of market volatilities on Pimco Dynamic and Gold Springs 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 Dynamic with a short position of Gold Springs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Dynamic and Gold Springs.

Diversification Opportunities for Pimco Dynamic and Gold Springs

0.41

Correlation Coefficient

Pimco Dynamic  Gold Springs

Very weak diversification

The 3 months correlation between Pimco and Gold is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Dynamic Income and Gold Springs Resource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Springs Resource and Pimco Dynamic 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 Dynamic Income are associated (or correlated) with Gold Springs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Springs Resource has no effect on the direction of Pimco Dynamic i.e., Pimco Dynamic and Gold Springs go up and down completely randomly.

Pair Corralation between Pimco Dynamic and Gold Springs

Considering the 90-day investment horizon Pimco Dynamic Income is expected to under-perform the Gold Springs. But the fund apears to be less risky and, when comparing its historical volatility, Pimco Dynamic Income is 7.79 times less risky than Gold Springs. The fund trades about -0.12 of its potential returns per unit of risk. The Gold Springs Resource is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  7.70  in Gold Springs Resource on September 11, 2025 and sell it today you would lose (0.80) from holding Gold Springs Resource or give up 10.39% of portfolio value over 90 days.

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

Pimco Dynamic Income  vs.  Gold Springs Resource

Pimco Dynamic Income

Risk-Adjusted Performance

Weakest

Over the last 90 days Pimco Dynamic Income has generated negative risk-adjusted returns adding no value to fund investors. Despite latest unfluctuating performance, the Fund's fundamental indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the fund traders.

Gold Springs Resource

Risk-Adjusted Performance

Weak

Over the last 90 days Gold Springs Resource has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Gold Springs is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Pimco Dynamic and Gold Springs

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

The idea behind Pimco Dynamic Income and Gold Springs Resource 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.