Correlation Between Burney Factor and Pacer Funds
Can any of the company-specific risk be diversified away by investing in both Burney Factor and Pacer Funds 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 Burney Factor and Pacer Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burney Factor Rotation and Pacer Funds Trust, you can compare the effects of market volatilities on Burney Factor and Pacer Funds 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 Burney Factor with a short position of Pacer Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burney Factor and Pacer Funds.
Diversification Opportunities for Burney Factor and Pacer Funds
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Burney and Pacer is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Burney Factor Rotation and Pacer Funds Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pacer Funds Trust and Burney Factor 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 Burney Factor Rotation are associated (or correlated) with Pacer Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pacer Funds Trust has no effect on the direction of Burney Factor i.e., Burney Factor and Pacer Funds go up and down completely randomly.
Pair Corralation between Burney Factor and Pacer Funds
Given the investment horizon of 90 days Burney Factor is expected to generate 1.25 times less return on investment than Pacer Funds. In addition to that, Burney Factor is 1.01 times more volatile than Pacer Funds Trust. It trades about 0.05 of its total potential returns per unit of risk. Pacer Funds Trust is currently generating about 0.06 per unit of volatility. If you would invest 1,960 in Pacer Funds Trust on September 12, 2024 and sell it today you would earn a total of 18.50 from holding Pacer Funds Trust or generate 0.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Burney Factor Rotation vs. Pacer Funds Trust
Performance |
| Timeline |
| Burney Factor Rotation |
| Pacer Funds Trust |
Burney Factor and Pacer Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Burney Factor and Pacer Funds
The main advantage of trading using opposite Burney Factor and Pacer Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burney Factor position performs unexpectedly, Pacer Funds 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 Pacer Funds will offset losses from the drop in Pacer Funds' long position.| Burney Factor vs. Invesco BulletShares 2030 | Burney Factor vs. Invesco BulletShares 2025 | Burney Factor vs. Invesco BulletShares 2024 |
| Pacer Funds vs. Freedom Day Dividend | Pacer Funds vs. Franklin Templeton ETF | Pacer Funds vs. iShares MSCI China | Pacer Funds vs. Tidal Trust II |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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