Correlation Between Pimco Dynamic and Amarc Resources

Can any of the company-specific risk be diversified away by investing in both Pimco Dynamic and Amarc Resources 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 Amarc Resources 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 Amarc Resources, you can compare the effects of market volatilities on Pimco Dynamic and Amarc Resources 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 Amarc Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Dynamic and Amarc Resources.

Diversification Opportunities for Pimco Dynamic and Amarc Resources

0.66

Correlation Coefficient

Pimco Dynamic  Amarc Resources

Poor diversification

The 3 months correlation between Pimco and Amarc is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Dynamic Income and Amarc Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amarc Resources 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 Amarc Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amarc Resources has no effect on the direction of Pimco Dynamic i.e., Pimco Dynamic and Amarc Resources go up and down completely randomly.

Pair Corralation between Pimco Dynamic and Amarc Resources

Considering the 90-day investment horizon Pimco Dynamic is expected to generate 14.59 times less return on investment than Amarc Resources. But when comparing it to its historical volatility, Pimco Dynamic Income is 10.13 times less risky than Amarc Resources. It trades about 0.1 of its potential returns per unit of risk. Amarc Resources is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  36.00  in Amarc Resources on May 1, 2025 and sell it today you would earn a total of  13.00  from holding Amarc Resources or generate 36.11% return on investment over 90 days.

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

Pimco Dynamic Income  vs.  Amarc Resources

Pimco Dynamic Income

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Pimco Dynamic Income are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy fundamental indicators, Pimco Dynamic is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Amarc Resources

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Amarc Resources are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Amarc Resources reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Pimco Dynamic and Amarc Resources

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

The idea behind Pimco Dynamic Income and Amarc Resources 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.