Correlation Between Pimco Global and Eagle Pointome

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

By analyzing existing cross correlation between Pimco Global Stocksplus and Eagle Pointome, you can compare the effects of market volatilities on Pimco Global and Eagle Pointome 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 Global with a short position of Eagle Pointome. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Global and Eagle Pointome.

Diversification Opportunities for Pimco Global and Eagle Pointome

-0.28

Correlation Coefficient

Pimco Global  Eagle Pointome

Very good diversification

The 3 months correlation between Pimco and Eagle is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Global Stocksplus and Eagle Pointome in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Pointome and Pimco Global 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 Global Stocksplus are associated (or correlated) with Eagle Pointome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Pointome has no effect on the direction of Pimco Global i.e., Pimco Global and Eagle Pointome go up and down completely randomly.

Pair Corralation between Pimco Global and Eagle Pointome

Considering the 90-day investment horizon Pimco Global Stocksplus is expected to generate 0.26 times more return on investment than Eagle Pointome. However, Pimco Global Stocksplus is 3.81 times less risky than Eagle Pointome. It trades about 0.26 of its potential returns per unit of risk. Eagle Pointome is currently generating about -0.06 per unit of risk. If you would invest  769.00  in Pimco Global Stocksplus on May 6, 2025 and sell it today you would earn a total of  66.00  from holding Pimco Global Stocksplus or generate 8.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Pimco Global Stocksplus  vs.  Eagle Pointome

Pimco Global Stocksplus

Risk-Adjusted Performance

Solid

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

Eagle Pointome

Risk-Adjusted Performance

Very Weak

Over the last 90 days Eagle Pointome has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's forward indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Pimco Global and Eagle Pointome

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

The idea behind Pimco Global Stocksplus and Eagle Pointome 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.