Correlation Between Pacer Cash and Research Affiliates
Can any of the company-specific risk be diversified away by investing in both Pacer Cash and Research Affiliates 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 Cash and Research Affiliates into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pacer Cash Cows and Research Affiliates Deletions, you can compare the effects of market volatilities on Pacer Cash and Research Affiliates 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 Cash with a short position of Research Affiliates. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pacer Cash and Research Affiliates.
Diversification Opportunities for Pacer Cash and Research Affiliates
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Pacer and Research is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Pacer Cash Cows and Research Affiliates Deletions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Research Affiliates and Pacer Cash 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 Cash Cows are associated (or correlated) with Research Affiliates. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Research Affiliates has no effect on the direction of Pacer Cash i.e., Pacer Cash and Research Affiliates go up and down completely randomly.
Pair Corralation between Pacer Cash and Research Affiliates
Given the investment horizon of 90 days Pacer Cash Cows is expected to generate 0.54 times more return on investment than Research Affiliates. However, Pacer Cash Cows is 1.84 times less risky than Research Affiliates. It trades about 0.33 of its potential returns per unit of risk. Research Affiliates Deletions is currently generating about 0.15 per unit of risk. If you would invest 5,668 in Pacer Cash Cows on October 23, 2024 and sell it today you would earn a total of 194.00 from holding Pacer Cash Cows or generate 3.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 94.74% |
| Values | Daily Returns |
Pacer Cash Cows vs. Research Affiliates Deletions
Performance |
| Timeline |
| Pacer Cash Cows |
| Research Affiliates |
Pacer Cash and Research Affiliates Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pacer Cash and Research Affiliates
The main advantage of trading using opposite Pacer Cash and Research Affiliates positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pacer Cash position performs unexpectedly, Research Affiliates 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 Research Affiliates will offset losses from the drop in Research Affiliates' long position.| Pacer Cash vs. Pacer Small Cap | Pacer Cash vs. Pacer Global Cash | Pacer Cash vs. Amplify CWP Enhanced | Pacer Cash vs. JPMorgan Nasdaq Equity |
| Research Affiliates vs. FT Vest Equity | Research Affiliates vs. Northern Lights | Research Affiliates vs. Dimensional International High | Research Affiliates vs. JPMorgan Fundamental Data |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |