Correlation Between IShares IBoxx and Pacer Trendpilot
Can any of the company-specific risk be diversified away by investing in both IShares IBoxx and Pacer Trendpilot 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 IBoxx and Pacer Trendpilot into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares iBoxx Investment and Pacer Trendpilot Bond, you can compare the effects of market volatilities on IShares IBoxx and Pacer Trendpilot 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 IBoxx with a short position of Pacer Trendpilot. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares IBoxx and Pacer Trendpilot.
Diversification Opportunities for IShares IBoxx and Pacer Trendpilot
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between IShares and Pacer is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding iShares iBoxx Investment and Pacer Trendpilot Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pacer Trendpilot Bond and IShares IBoxx 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 iBoxx Investment are associated (or correlated) with Pacer Trendpilot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pacer Trendpilot Bond has no effect on the direction of IShares IBoxx i.e., IShares IBoxx and Pacer Trendpilot go up and down completely randomly.
Pair Corralation between IShares IBoxx and Pacer Trendpilot
Considering the 90-day investment horizon iShares iBoxx Investment is expected to under-perform the Pacer Trendpilot. In addition to that, IShares IBoxx is 2.15 times more volatile than Pacer Trendpilot Bond. It trades about -0.04 of its total potential returns per unit of risk. Pacer Trendpilot Bond is currently generating about 0.03 per unit of volatility. If you would invest 2,015 in Pacer Trendpilot Bond on August 26, 2024 and sell it today you would earn a total of 3.00 from holding Pacer Trendpilot Bond or generate 0.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares iBoxx Investment vs. Pacer Trendpilot Bond
Performance |
| Timeline |
| iShares iBoxx Investment |
| Pacer Trendpilot Bond |
IShares IBoxx and Pacer Trendpilot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares IBoxx and Pacer Trendpilot
The main advantage of trading using opposite IShares IBoxx and Pacer Trendpilot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares IBoxx position performs unexpectedly, Pacer Trendpilot 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 Trendpilot will offset losses from the drop in Pacer Trendpilot's long position.| IShares IBoxx vs. Senstar Technologies | IShares IBoxx vs. ImmuCell | IShares IBoxx vs. Anika Therapeutics | IShares IBoxx vs. Aquagold International |
| Pacer Trendpilot vs. Senstar Technologies | Pacer Trendpilot vs. ImmuCell | Pacer Trendpilot vs. Anika Therapeutics | Pacer Trendpilot vs. Aquagold International |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| CEOs Directory Screen CEOs from public companies around the world |