Correlation Between BlackRock Health and PIMCO Access

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

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

Diversification Opportunities for BlackRock Health and PIMCO Access

0.01

Correlation Coefficient

BlackRock Health  PIMCO Access

Significant diversification

The 3 months correlation between BlackRock and PIMCO is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock Health Sciences 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 BlackRock Health 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 BlackRock Health Sciences 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 BlackRock Health i.e., BlackRock Health and PIMCO Access go up and down completely randomly.

Pair Corralation between BlackRock Health and PIMCO Access

Given the investment horizon of 90 days BlackRock Health is expected to generate 2.13 times less return on investment than PIMCO Access. In addition to that, BlackRock Health is 1.48 times more volatile than PIMCO Access Income. It trades about 0.04 of its total potential returns per unit of risk. PIMCO Access Income is currently generating about 0.14 per unit of volatility. If you would invest  1,493  in PIMCO Access Income on May 7, 2025 and sell it today you would earn a total of  77.00  from holding PIMCO Access Income or generate 5.16% return on investment over 90 days.

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

BlackRock Health Sciences  vs.  PIMCO Access Income

BlackRock Health Sciences

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in BlackRock Health Sciences are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong technical and fundamental indicators, BlackRock Health is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

PIMCO Access Income

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in PIMCO Access Income are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, PIMCO Access is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with BlackRock Health and PIMCO Access

The main advantage of trading using opposite BlackRock Health and PIMCO Access positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlackRock Health 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 BlackRock Health Sciences 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.

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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.