Correlation Between Martin Currie and Pacer Funds
Can any of the company-specific risk be diversified away by investing in both Martin Currie and Pacer Funds 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 Martin Currie and Pacer Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Martin Currie Sustainable and Pacer Funds Trust, you can compare the effects of market volatilities on Martin Currie and Pacer Funds 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 Martin Currie with a short position of Pacer Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Martin Currie and Pacer Funds.
Diversification Opportunities for Martin Currie and Pacer Funds
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Martin and Pacer is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Martin Currie Sustainable and Pacer Funds Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pacer Funds Trust and Martin Currie 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 Martin Currie Sustainable are associated (or correlated) with Pacer Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pacer Funds Trust has no effect on the direction of Martin Currie i.e., Martin Currie and Pacer Funds go up and down completely randomly.
Pair Corralation between Martin Currie and Pacer Funds
Given the investment horizon of 90 days Martin Currie Sustainable is expected to generate 1.48 times more return on investment than Pacer Funds. However, Martin Currie is 1.48 times more volatile than Pacer Funds Trust. It trades about 0.04 of its potential returns per unit of risk. Pacer Funds Trust is currently generating about -0.12 per unit of risk. If you would invest 1,392 in Martin Currie Sustainable on September 12, 2024 and sell it today you would earn a total of 10.00 from holding Martin Currie Sustainable or generate 0.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Martin Currie Sustainable vs. Pacer Funds Trust
Performance |
| Timeline |
| Martin Currie Sustainable |
| Pacer Funds Trust |
Martin Currie and Pacer Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Martin Currie and Pacer Funds
The main advantage of trading using opposite Martin Currie and Pacer Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Martin Currie position performs unexpectedly, Pacer Funds 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 Funds will offset losses from the drop in Pacer Funds' long position.| Martin Currie vs. BrandywineGLOBAL Dynamic | Martin Currie vs. First Trust Growth | Martin Currie vs. Invesco NASDAQ Future | Martin Currie vs. Burney Factor Rotation |
| Pacer Funds vs. Freedom Day Dividend | Pacer Funds vs. Franklin Templeton ETF | Pacer Funds vs. iShares MSCI China | Pacer Funds vs. Tidal Trust II |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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