Correlation Between Pimco Dynamic and Repsol

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

Diversification Opportunities for Pimco Dynamic and Repsol

0.92

Correlation Coefficient

Pimco Dynamic  Repsol

Almost no diversification

The 3 months correlation between Pimco and Repsol is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Dynamic Income and Repsol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repsol 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 Repsol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repsol has no effect on the direction of Pimco Dynamic i.e., Pimco Dynamic and Repsol go up and down completely randomly.

Pair Corralation between Pimco Dynamic and Repsol

Considering the 90-day investment horizon Pimco Dynamic is expected to generate 4.06 times less return on investment than Repsol. But when comparing it to its historical volatility, Pimco Dynamic Income is 2.76 times less risky than Repsol. It trades about 0.24 of its potential returns per unit of risk. Repsol is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest  1,035  in Repsol on May 1, 2025 and sell it today you would earn a total of  313.00  from holding Repsol or generate 30.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	96.88%
Values	Daily Returns

Pimco Dynamic Income  vs.  Repsol

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 19 (%) 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.

Repsol

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Repsol are ranked lower than 28 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Repsol exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Pimco Dynamic and Repsol

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

The idea behind Pimco Dynamic Income and Repsol 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..