Correlation Between Pimco Trends and Fixed Income
Can any of the company-specific risk be diversified away by investing in both Pimco Trends 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 Trends 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 Trends Managed and Fixed Income Shares, you can compare the effects of market volatilities on Pimco Trends 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 Trends with a short position of Fixed Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Trends and Fixed Income.
Diversification Opportunities for Pimco Trends and Fixed Income
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pimco and Fixed is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Trends Managed 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 Trends 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 Trends Managed 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 Trends i.e., Pimco Trends and Fixed Income go up and down completely randomly.
Pair Corralation between Pimco Trends and Fixed Income
Assuming the 90 days horizon Pimco Trends Managed is expected to generate 3.2 times more return on investment than Fixed Income. However, Pimco Trends is 3.2 times more volatile than Fixed Income Shares. It trades about 0.16 of its potential returns per unit of risk. Fixed Income Shares is currently generating about 0.26 per unit of risk. If you would invest 973.00 in Pimco Trends Managed on September 7, 2025 and sell it today you would earn a total of 52.00 from holding Pimco Trends Managed or generate 5.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Trends Managed vs. Fixed Income Shares
Performance |
| Timeline |
| Pimco Trends Managed |
| Fixed Income Shares |
Pimco Trends and Fixed Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Trends and Fixed Income
The main advantage of trading using opposite Pimco Trends and Fixed Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Trends 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 Trends vs. Pimco Rae Worldwide | Pimco Trends vs. Pimco Rae Worldwide | Pimco Trends vs. Pimco Rae Worldwide | Pimco Trends vs. Pimco Rae Worldwide |
| Fixed Income vs. World Energy Fund | Fixed Income vs. Hennessy Bp Energy | Fixed Income vs. Blackrock All Cap Energy | Fixed Income vs. Calvert Global Energy |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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