Correlation Between FS KKR and PIMCO Access

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

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

Diversification Opportunities for FS KKR and PIMCO Access

0.42

Correlation Coefficient

FS KKR  PIMCO Access

Very weak diversification

The 3 months correlation between FSK and PIMCO is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding FS KKR Capital 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 FS KKR 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 FS KKR Capital 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 FS KKR i.e., FS KKR and PIMCO Access go up and down completely randomly.

Pair Corralation between FS KKR and PIMCO Access

Considering the 90-day investment horizon FS KKR Capital is expected to generate 1.81 times more return on investment than PIMCO Access. However, FS KKR is 1.81 times more volatile than PIMCO Access Income. It trades about 0.13 of its potential returns per unit of risk. PIMCO Access Income is currently generating about 0.13 per unit of risk. If you would invest  1,886  in FS KKR Capital on May 4, 2025 and sell it today you would earn a total of  164.00  from holding FS KKR Capital or generate 8.7% return on investment over 90 days.

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

FS KKR Capital  vs.  PIMCO Access Income

FS KKR Capital

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in FS KKR Capital are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady basic indicators, FS KKR may actually be approaching a critical reversion point that can send shares even higher in September 2025.

PIMCO Access Income

Risk-Adjusted Performance

OK

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 FS KKR and PIMCO Access

The main advantage of trading using opposite FS KKR and PIMCO Access positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FS KKR 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 FS KKR Capital 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.