Correlation Between Pcm Fund and PIMCO Access

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

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

Diversification Opportunities for Pcm Fund and PIMCO Access

-0.66

Correlation Coefficient

Pcm Fund  PIMCO Access

Excellent diversification

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

Pair Corralation between Pcm Fund and PIMCO Access

Considering the 90-day investment horizon Pcm Fund is expected to under-perform the PIMCO Access. In addition to that, Pcm Fund is 3.1 times more volatile than PIMCO Access Income. It trades about -0.1 of its total potential returns per unit of risk. PIMCO Access Income is currently generating about 0.2 per unit of volatility. If you would invest  1,497  in PIMCO Access Income on December 27, 2024 and sell it today you would earn a total of  117.00  from holding PIMCO Access Income or generate 7.82% return on investment over 90 days.

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

Pcm Fund  vs.  PIMCO Access Income

Pcm Fund

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pcm Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of conflicting performance in the last few months, the Fund's fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the fund investors.

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 15 (%) 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.

Pair Trading with Pcm Fund and PIMCO Access

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

The idea behind Pcm Fund and PIMCO Access Income 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.