PCM vs PFN: Correlation
PCM Fund, Inc. (PCM) and PIMCO Income Strategy Fund II (PFN) show a moderate relationship: their 3-year correlation of weekly returns is 0.58.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PCM and PFN?
On 3 years of weekly data the PCM/PFN correlation comes out at 0.58, moderate. Recent behaviour matches the longer record: 0.54 over 1 year against 0.58 over 3. The 5-year figure is 0.59, and annualized covariance runs at 134.1 %².
Few assets follow PCM as closely as PFN, which ranks #3 of 11 tracked partners. The trailing year gives PFN the advantage: -2.9% versus +4.1%, a 7.0-point spread. Note the risk asymmetry: PCM runs 1.6 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
PCM vs PFN: side by side
| PCM (PCM Fund, Inc.) | PFN (PIMCO Income Strategy Fund II) | |
|---|---|---|
| 1-year return | -2.9% | +4.1% |
| 5-year return | -19.9% | +9.3% |
| Volatility (ann.) | 19.0% | 12.2% |
| Beta vs S&P 500 | 0.46 | 0.40 |
| Max drawdown (3Y) | -27.1% | -11.1% |
| Market cap | – | $0.7B |
| P/E (trailing) | 9.6 | 13.4 |
| Dividend yield | 14.25% | 12.40% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | PCM | PFN |
|---|---|---|
| 2022 | -19.7% | -17.6% |
| 2023 | +12.4% | +15.5% |
| 2024 | +8.8% | +15.8% |
| 2025 | -10.1% | +13.1% |
| 2026 | -4.0% | +1.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PCM and PFN good diversifiers for each other?
Only partially. A correlation of 0.58 means PCM and PFN share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between PCM and PFN?
As of 2026-08-27, the correlation of weekly returns between PCM and PFN is 0.58 over 3 years, 0.54 over 1 year and 0.59 over 5 years.
Is PFN a good diversifier for PCM?
Only partially. A correlation of 0.58 means PCM and PFN share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.58 mean?
A reading of 0.58 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/pcm-vs-pfn.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/pcm-vs-pfn/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: PCM correlations · PFN correlations
