Correlation Between Pimco Dynamic and First Citizens

Can any of the company-specific risk be diversified away by investing in both Pimco Dynamic and First Citizens 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 Dynamic and First Citizens into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Pimco Dynamic Income and The First Citizens, you can compare the effects of market volatilities on Pimco Dynamic and First Citizens 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 Dynamic with a short position of First Citizens. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Dynamic and First Citizens.

Diversification Opportunities for Pimco Dynamic and First Citizens

-0.09

Correlation Coefficient

Pimco Dynamic  First Citizens

Good diversification

The 3 months correlation between Pimco and First is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Dynamic Income and The First Citizens in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Citizens and Pimco Dynamic 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 Dynamic Income are associated (or correlated) with First Citizens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Citizens has no effect on the direction of Pimco Dynamic i.e., Pimco Dynamic and First Citizens go up and down completely randomly.

Pair Corralation between Pimco Dynamic and First Citizens

Considering the 90-day investment horizon Pimco Dynamic Income is expected to generate 0.04 times more return on investment than First Citizens. However, Pimco Dynamic Income is 28.43 times less risky than First Citizens. It trades about 0.26 of its potential returns per unit of risk. The First Citizens is currently generating about -0.15 per unit of risk. If you would invest  1,785  in Pimco Dynamic Income on April 30, 2025 and sell it today you would earn a total of  129.00  from holding Pimco Dynamic Income or generate 7.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	68.85%
Values	Daily Returns

Pimco Dynamic Income  vs.  The First Citizens

Pimco Dynamic Income

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Pimco Dynamic Income are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. Despite fairly unfluctuating fundamental indicators, Pimco Dynamic may actually be approaching a critical reversion point that can send shares even higher in August 2025.

First Citizens

Risk-Adjusted Performance

Very Weak

Over the last 90 days The First Citizens has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's fundamental indicators remain quite persistent which may send shares a bit higher in August 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Pimco Dynamic and First Citizens

The main advantage of trading using opposite Pimco Dynamic and First Citizens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Dynamic position performs unexpectedly, First Citizens 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 First Citizens will offset losses from the drop in First Citizens' long position.

The idea behind Pimco Dynamic Income and The First Citizens 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.