Correlation Between Pacer Financial and IShares MSCI
Can any of the company-specific risk be diversified away by investing in both Pacer Financial and IShares MSCI 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 Pacer Financial and IShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pacer Financial and iShares MSCI Singapore, you can compare the effects of market volatilities on Pacer Financial and IShares MSCI 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 Pacer Financial with a short position of IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pacer Financial and IShares MSCI.
Diversification Opportunities for Pacer Financial and IShares MSCI
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pacer and IShares is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Pacer Financial and iShares MSCI Singapore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI Singapore and Pacer Financial 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 Pacer Financial are associated (or correlated) with IShares MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares MSCI Singapore has no effect on the direction of Pacer Financial i.e., Pacer Financial and IShares MSCI go up and down completely randomly.
Pair Corralation between Pacer Financial and IShares MSCI
Given the investment horizon of 90 days Pacer Financial is expected to generate 1.25 times less return on investment than IShares MSCI. In addition to that, Pacer Financial is 1.46 times more volatile than iShares MSCI Singapore. It trades about 0.09 of its total potential returns per unit of risk. iShares MSCI Singapore is currently generating about 0.16 per unit of volatility. If you would invest 1,747 in iShares MSCI Singapore on August 27, 2024 and sell it today you would earn a total of 527.00 from holding iShares MSCI Singapore or generate 30.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 84.04% |
| Values | Daily Returns |
Pacer Financial vs. iShares MSCI Singapore
Performance |
| Timeline |
| Pacer Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| iShares MSCI Singapore |
Pacer Financial and IShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pacer Financial and IShares MSCI
The main advantage of trading using opposite Pacer Financial and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pacer Financial position performs unexpectedly, IShares MSCI 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 IShares MSCI will offset losses from the drop in IShares MSCI's long position.| Pacer Financial vs. iShares MSCI Singapore | Pacer Financial vs. iShares MSCI Malaysia | Pacer Financial vs. iShares MSCI Australia | Pacer Financial vs. iShares MSCI South |
| IShares MSCI vs. iShares MSCI Malaysia | IShares MSCI vs. iShares MSCI Hong | IShares MSCI vs. iShares MSCI Australia | IShares MSCI vs. iShares MSCI Taiwan |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |