Correlation Between Pimco Corporate and Eagle Point
Can any of the company-specific risk be diversified away by investing in both Pimco Corporate and Eagle Point 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 Corporate and Eagle Point into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Corporate Income and Eagle Point Credit, you can compare the effects of market volatilities on Pimco Corporate and Eagle Point 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 Corporate with a short position of Eagle Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Corporate and Eagle Point.
Diversification Opportunities for Pimco Corporate and Eagle Point
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pimco and Eagle is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Corporate Income and Eagle Point Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Point Credit and Pimco Corporate 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 Corporate Income are associated (or correlated) with Eagle Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Point Credit has no effect on the direction of Pimco Corporate i.e., Pimco Corporate and Eagle Point go up and down completely randomly.
Pair Corralation between Pimco Corporate and Eagle Point
Considering the 90-day investment horizon Pimco Corporate Income is expected to generate 0.97 times more return on investment than Eagle Point. However, Pimco Corporate Income is 1.03 times less risky than Eagle Point. It trades about 0.08 of its potential returns per unit of risk. Eagle Point Credit is currently generating about 0.05 per unit of risk. If you would invest 1,047 in Pimco Corporate Income on August 27, 2024 and sell it today you would earn a total of 418.00 from holding Pimco Corporate Income or generate 39.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Corporate Income vs. Eagle Point Credit
Performance |
| Timeline |
| Pimco Corporate Income |
| Eagle Point Credit |
Pimco Corporate and Eagle Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Corporate and Eagle Point
The main advantage of trading using opposite Pimco Corporate and Eagle Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Corporate position performs unexpectedly, Eagle Point 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 Eagle Point will offset losses from the drop in Eagle Point's long position.| Pimco Corporate vs. Pimco Dynamic Income | Pimco Corporate vs. Guggenheim Strategic Opportunities | Pimco Corporate vs. Brookfield Real Assets | Pimco Corporate vs. Reaves Utility If |
| Eagle Point vs. Cornerstone Strategic Return | Eagle Point vs. Cornerstone Strategic Value | Eagle Point vs. Oxford Square Capital | Eagle Point vs. Guggenheim Strategic Opportunities |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |