Correlation Between Pacer Cash and Cambiar Aggressive
Can any of the company-specific risk be diversified away by investing in both Pacer Cash and Cambiar Aggressive 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 Cambiar Aggressive 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 Cambiar Aggressive Value, you can compare the effects of market volatilities on Pacer Cash and Cambiar Aggressive 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 Cambiar Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pacer Cash and Cambiar Aggressive.
Diversification Opportunities for Pacer Cash and Cambiar Aggressive
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pacer and Cambiar is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Pacer Cash Cows and Cambiar Aggressive Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambiar Aggressive Value 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 Cambiar Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambiar Aggressive Value has no effect on the direction of Pacer Cash i.e., Pacer Cash and Cambiar Aggressive go up and down completely randomly.
Pair Corralation between Pacer Cash and Cambiar Aggressive
Given the investment horizon of 90 days Pacer Cash is expected to generate 1.13 times less return on investment than Cambiar Aggressive. In addition to that, Pacer Cash is 1.25 times more volatile than Cambiar Aggressive Value. It trades about 0.05 of its total potential returns per unit of risk. Cambiar Aggressive Value is currently generating about 0.07 per unit of volatility. If you would invest 2,405 in Cambiar Aggressive Value on September 3, 2024 and sell it today you would earn a total of 687.00 from holding Cambiar Aggressive Value or generate 28.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.58% |
| Values | Daily Returns |
Pacer Cash Cows vs. Cambiar Aggressive Value
Performance |
| Timeline |
| Pacer Cash Cows |
| Cambiar Aggressive Value |
Pacer Cash and Cambiar Aggressive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pacer Cash and Cambiar Aggressive
The main advantage of trading using opposite Pacer Cash and Cambiar Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pacer Cash position performs unexpectedly, Cambiar Aggressive 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 Cambiar Aggressive will offset losses from the drop in Cambiar Aggressive's long position.| Pacer Cash vs. Pacer Emerging Markets | Pacer Cash vs. Pacer Developed Markets | Pacer Cash vs. Pacer Cash Cows | Pacer Cash vs. First Trust IPOX |
| Cambiar Aggressive vs. Horizon Kinetics Inflation | Cambiar Aggressive vs. Simplify Exchange Traded | Cambiar Aggressive vs. iMGP DBi Managed | Cambiar Aggressive vs. Quadratic Interest Rate |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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