Correlation Between IShares Cohen and Pacer Benchmark
Can any of the company-specific risk be diversified away by investing in both IShares Cohen 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 IShares Cohen and Pacer Benchmark into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Cohen Steers and Pacer Benchmark Industrial, you can compare the effects of market volatilities on IShares Cohen 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 IShares Cohen with a short position of Pacer Benchmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Cohen and Pacer Benchmark.
Diversification Opportunities for IShares Cohen and Pacer Benchmark
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IShares and Pacer is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding iShares Cohen Steers and Pacer Benchmark Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pacer Benchmark Indu and IShares Cohen 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 iShares Cohen Steers 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 Indu has no effect on the direction of IShares Cohen i.e., IShares Cohen and Pacer Benchmark go up and down completely randomly.
Pair Corralation between IShares Cohen and Pacer Benchmark
Considering the 90-day investment horizon iShares Cohen Steers is expected to generate 0.98 times more return on investment than Pacer Benchmark. However, iShares Cohen Steers is 1.02 times less risky than Pacer Benchmark. It trades about 0.12 of its potential returns per unit of risk. Pacer Benchmark Industrial is currently generating about 0.01 per unit of risk. If you would invest 6,470 in iShares Cohen Steers on August 30, 2024 and sell it today you would earn a total of 179.00 from holding iShares Cohen Steers or generate 2.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Cohen Steers vs. Pacer Benchmark Industrial
Performance |
| Timeline |
| iShares Cohen Steers |
| Pacer Benchmark Indu |
IShares Cohen and Pacer Benchmark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Cohen and Pacer Benchmark
The main advantage of trading using opposite IShares Cohen and Pacer Benchmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Cohen 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.| IShares Cohen vs. SPDR Dow Jones | IShares Cohen vs. iShares Real Estate | IShares Cohen vs. iShares North American | IShares Cohen vs. iShares Utilities ETF |
| Pacer Benchmark vs. Pacer Benchmark Data | Pacer Benchmark vs. US Diversified Real | Pacer Benchmark vs. Nuveen Short Term REIT |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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