Correlation Between Pimco Dynamic and ISpecimen

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

Diversification Opportunities for Pimco Dynamic and ISpecimen

-0.35

Correlation Coefficient

Pimco Dynamic  ISpecimen

Very good diversification

The 3 months correlation between Pimco and ISpecimen is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Dynamic Income and iSpecimen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iSpecimen 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 ISpecimen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iSpecimen has no effect on the direction of Pimco Dynamic i.e., Pimco Dynamic and ISpecimen go up and down completely randomly.

Pair Corralation between Pimco Dynamic and ISpecimen

Considering the 90-day investment horizon Pimco Dynamic Income is expected to generate 0.11 times more return on investment than ISpecimen. However, Pimco Dynamic Income is 8.87 times less risky than ISpecimen. It trades about 0.06 of its potential returns per unit of risk. iSpecimen is currently generating about -0.03 per unit of risk. If you would invest  1,451  in Pimco Dynamic Income on May 3, 2025 and sell it today you would earn a total of  469.00  from holding Pimco Dynamic Income or generate 32.32% 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.  iSpecimen

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 16 (%) 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.

iSpecimen

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in iSpecimen are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, ISpecimen exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Pimco Dynamic and ISpecimen

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

The idea behind Pimco Dynamic Income and iSpecimen 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.