Correlation Between Pacer BlueStar and Pacer Emerging
Can any of the company-specific risk be diversified away by investing in both Pacer BlueStar and Pacer Emerging 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 BlueStar and Pacer Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pacer BlueStar Engineering and Pacer Emerging Markets, you can compare the effects of market volatilities on Pacer BlueStar and Pacer Emerging 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 BlueStar with a short position of Pacer Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pacer BlueStar and Pacer Emerging.
Diversification Opportunities for Pacer BlueStar and Pacer Emerging
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pacer and Pacer is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Pacer BlueStar Engineering and Pacer Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pacer Emerging Markets and Pacer BlueStar 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 BlueStar Engineering are associated (or correlated) with Pacer Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pacer Emerging Markets has no effect on the direction of Pacer BlueStar i.e., Pacer BlueStar and Pacer Emerging go up and down completely randomly.
Pair Corralation between Pacer BlueStar and Pacer Emerging
Given the investment horizon of 90 days Pacer BlueStar Engineering is expected to generate 1.22 times more return on investment than Pacer Emerging. However, Pacer BlueStar is 1.22 times more volatile than Pacer Emerging Markets. It trades about 0.08 of its potential returns per unit of risk. Pacer Emerging Markets is currently generating about 0.06 per unit of risk. If you would invest 1,993 in Pacer BlueStar Engineering on November 3, 2024 and sell it today you would earn a total of 297.00 from holding Pacer BlueStar Engineering or generate 14.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pacer BlueStar Engineering vs. Pacer Emerging Markets
Performance |
| Timeline |
| Pacer BlueStar Engin |
| Pacer Emerging Markets |
Pacer BlueStar and Pacer Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pacer BlueStar and Pacer Emerging
The main advantage of trading using opposite Pacer BlueStar and Pacer Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pacer BlueStar position performs unexpectedly, Pacer Emerging 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 Emerging will offset losses from the drop in Pacer Emerging's long position.| Pacer BlueStar vs. Pacer Emerging Markets | Pacer BlueStar vs. Pacer Funds Trust | Pacer BlueStar vs. Pacer Funds Trust | Pacer BlueStar vs. Invesco BulletShares 2031 |
| Pacer Emerging vs. Pacer Cash Cows | Pacer Emerging vs. Pacer Developed Markets | Pacer Emerging vs. First Trust Developed | Pacer Emerging vs. First Trust Dorsey |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |