Correlation Between Pimco Dynamic and Immutable

Can any of the company-specific risk be diversified away by investing in both Pimco Dynamic and Immutable 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 Immutable 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 Immutable X, you can compare the effects of market volatilities on Pimco Dynamic and Immutable 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 Immutable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Dynamic and Immutable.

Diversification Opportunities for Pimco Dynamic and Immutable

-0.3

Correlation Coefficient

Pimco Dynamic  Immutable

Very good diversification

The 3 months correlation between Pimco and Immutable is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Dynamic Income and Immutable X in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immutable X 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 Immutable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immutable X has no effect on the direction of Pimco Dynamic i.e., Pimco Dynamic and Immutable go up and down completely randomly.

Pair Corralation between Pimco Dynamic and Immutable

Considering the 90-day investment horizon Pimco Dynamic Income is expected to generate 0.07 times more return on investment than Immutable. However, Pimco Dynamic Income is 13.82 times less risky than Immutable. It trades about 0.18 of its potential returns per unit of risk. Immutable X is currently generating about -0.09 per unit of risk. If you would invest  1,848  in Pimco Dynamic Income on May 10, 2025 and sell it today you would earn a total of  84.00  from holding Pimco Dynamic Income or generate 4.55% return on investment over 90 days.

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

Pimco Dynamic Income  vs.  Immutable X

Pimco Dynamic Income

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Pimco Dynamic Income are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. Despite fairly strong fundamental indicators, Pimco Dynamic is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Immutable X

Risk-Adjusted Performance

Weakest

Over the last 90 days Immutable X has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Crypto's basic indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for Immutable X shareholders.

Pair Trading with Pimco Dynamic and Immutable

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

The idea behind Pimco Dynamic Income and Immutable X 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.