Correlation Between VanEck CMCI and Pacer Benchmark
Can any of the company-specific risk be diversified away by investing in both VanEck CMCI and Pacer Benchmark 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 VanEck CMCI and Pacer Benchmark into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck CMCI Commodity and Pacer Benchmark Data, you can compare the effects of market volatilities on VanEck CMCI and Pacer Benchmark 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 VanEck CMCI with a short position of Pacer Benchmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck CMCI and Pacer Benchmark.
Diversification Opportunities for VanEck CMCI and Pacer Benchmark
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VanEck and Pacer is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding VanEck CMCI Commodity and Pacer Benchmark Data in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pacer Benchmark Data and VanEck CMCI 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 VanEck CMCI Commodity are associated (or correlated) with Pacer Benchmark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pacer Benchmark Data has no effect on the direction of VanEck CMCI i.e., VanEck CMCI and Pacer Benchmark go up and down completely randomly.
Pair Corralation between VanEck CMCI and Pacer Benchmark
Given the investment horizon of 90 days VanEck CMCI Commodity is expected to generate 1.34 times more return on investment than Pacer Benchmark. However, VanEck CMCI is 1.34 times more volatile than Pacer Benchmark Data. It trades about 0.17 of its potential returns per unit of risk. Pacer Benchmark Data is currently generating about 0.15 per unit of risk. If you would invest 2,411 in VanEck CMCI Commodity on October 24, 2024 and sell it today you would earn a total of 121.00 from holding VanEck CMCI Commodity or generate 5.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VanEck CMCI Commodity vs. Pacer Benchmark Data
Performance |
| Timeline |
| VanEck CMCI Commodity |
| Pacer Benchmark Data |
VanEck CMCI and Pacer Benchmark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck CMCI and Pacer Benchmark
The main advantage of trading using opposite VanEck CMCI and Pacer Benchmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck CMCI position performs unexpectedly, Pacer Benchmark 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 Benchmark will offset losses from the drop in Pacer Benchmark's long position.| VanEck CMCI vs. Neuberger Berman Commodity | VanEck CMCI vs. abrdn Bloomberg All | VanEck CMCI vs. abrdn Bloomberg All | VanEck CMCI vs. Direxion Auspice Broad |
| Pacer Benchmark vs. Pacer Benchmark Industrial | Pacer Benchmark vs. First Trust NASDAQ | Pacer Benchmark vs. Global X Internet | Pacer Benchmark vs. ProShares Online Retail |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| 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 | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |