Correlation Between Eagle Point and Pimco Corporate
Can any of the company-specific risk be diversified away by investing in both Eagle Point and Pimco Corporate 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 Eagle Point and Pimco Corporate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Point Credit and Pimco Corporate Income, you can compare the effects of market volatilities on Eagle Point and Pimco Corporate 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 Eagle Point with a short position of Pimco Corporate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Point and Pimco Corporate.
Diversification Opportunities for Eagle Point and Pimco Corporate
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eagle and Pimco is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Point Credit and Pimco Corporate Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Corporate Income and Eagle Point 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 Eagle Point Credit are associated (or correlated) with Pimco Corporate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Corporate Income has no effect on the direction of Eagle Point i.e., Eagle Point and Pimco Corporate go up and down completely randomly.
Pair Corralation between Eagle Point and Pimco Corporate
Considering the 90-day investment horizon Eagle Point Credit is expected to under-perform the Pimco Corporate. In addition to that, Eagle Point is 4.13 times more volatile than Pimco Corporate Income. It trades about -0.06 of its total potential returns per unit of risk. Pimco Corporate Income is currently generating about 0.21 per unit of volatility. If you would invest 1,395 in Pimco Corporate Income on December 27, 2024 and sell it today you would earn a total of 48.00 from holding Pimco Corporate Income or generate 3.44% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Eagle Point Credit vs. Pimco Corporate Income
Performance |
Timeline |
Eagle Point Credit |
Pimco Corporate Income |
Eagle Point and Pimco Corporate Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eagle Point and Pimco Corporate
The main advantage of trading using opposite Eagle Point and Pimco Corporate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Point position performs unexpectedly, Pimco Corporate 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 Corporate will offset losses from the drop in Pimco Corporate's long position.Eagle Point vs. Cornerstone Strategic Return | Eagle Point vs. Cornerstone Strategic Value | Eagle Point vs. Oxford Square Capital | Eagle Point vs. Guggenheim Strategic Opportunities |
Pimco Corporate vs. Pimco Dynamic Income | Pimco Corporate vs. Guggenheim Strategic Opportunities | Pimco Corporate vs. Brookfield Real Assets | Pimco Corporate vs. Reaves Utility If |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Share Portfolio Track or share privately all of your investments from the convenience of any device |