Correlation Between PIMCO Access and Eaton Vance

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

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

Diversification Opportunities for PIMCO Access and Eaton Vance

0.85

Correlation Coefficient

PIMCO Access  Eaton Vance

Very poor diversification

The 3 months correlation between PIMCO and Eaton is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding PIMCO Access Income and Eaton Vance Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Short and PIMCO Access 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 Access Income are associated (or correlated) with Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance Short has no effect on the direction of PIMCO Access i.e., PIMCO Access and Eaton Vance go up and down completely randomly.

Pair Corralation between PIMCO Access and Eaton Vance

Given the investment horizon of 90 days PIMCO Access Income is expected to generate 0.93 times more return on investment than Eaton Vance. However, PIMCO Access Income is 1.07 times less risky than Eaton Vance. It trades about 0.27 of its potential returns per unit of risk. Eaton Vance Short is currently generating about 0.09 per unit of risk. If you would invest  1,471  in PIMCO Access Income on December 28, 2024 and sell it today you would earn a total of  143.00  from holding PIMCO Access Income or generate 9.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.36%
Values	Daily Returns

PIMCO Access Income  vs.  Eaton Vance Short

PIMCO Access Income

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in PIMCO Access Income are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, PIMCO Access may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Eaton Vance Short

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Eaton Vance Short are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Eaton Vance 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 Access and Eaton Vance

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

The idea behind PIMCO Access Income and Eaton Vance Short 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.