Correlation Between Pimco Income and Fixed Income
Can any of the company-specific risk be diversified away by investing in both Pimco Income and Fixed Income 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 Income and Fixed Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Income Fund and Fixed Income Shares, you can compare the effects of market volatilities on Pimco Income and Fixed Income 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 Income with a short position of Fixed Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Income and Fixed Income.
Diversification Opportunities for Pimco Income and Fixed Income
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pimco and Fixed is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Income Fund and Fixed Income Shares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fixed Income Shares and Pimco Income 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 Income Fund are associated (or correlated) with Fixed Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fixed Income Shares has no effect on the direction of Pimco Income i.e., Pimco Income and Fixed Income go up and down completely randomly.
Pair Corralation between Pimco Income and Fixed Income
Assuming the 90 days horizon Pimco Income is expected to generate 1.97 times less return on investment than Fixed Income. But when comparing it to its historical volatility, Pimco Income Fund is 1.17 times less risky than Fixed Income. It trades about 0.2 of its potential returns per unit of risk. Fixed Income Shares is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 939.00 in Fixed Income Shares on September 3, 2025 and sell it today you would earn a total of 40.00 from holding Fixed Income Shares or generate 4.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Income Fund vs. Fixed Income Shares
Performance |
| Timeline |
| Pimco Income |
| Fixed Income Shares |
Pimco Income and Fixed Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Income and Fixed Income
The main advantage of trading using opposite Pimco Income and Fixed Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Income position performs unexpectedly, Fixed Income 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 Fixed Income will offset losses from the drop in Fixed Income's long position.| Pimco Income vs. Dunham Large Cap | Pimco Income vs. Wasatch Large Cap | Pimco Income vs. Fidelity Large Cap | Pimco Income vs. Calvert Large Cap |
| Fixed Income vs. Pimco Rae Worldwide | Fixed Income vs. Pimco Rae Worldwide | Fixed Income vs. Pimco Rae Worldwide | Fixed Income vs. Pimco Rae Worldwide |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Positions Ratings 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 | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |