Correlation Between Pacer Lunt and Spinnaker ETF
Can any of the company-specific risk be diversified away by investing in both Pacer Lunt and Spinnaker ETF 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 Lunt and Spinnaker ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pacer Lunt Large and Spinnaker ETF Series, you can compare the effects of market volatilities on Pacer Lunt and Spinnaker ETF 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 Lunt with a short position of Spinnaker ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pacer Lunt and Spinnaker ETF.
Diversification Opportunities for Pacer Lunt and Spinnaker ETF
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pacer and Spinnaker is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Pacer Lunt Large and Spinnaker ETF Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spinnaker ETF Series and Pacer Lunt 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 Lunt Large are associated (or correlated) with Spinnaker ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spinnaker ETF Series has no effect on the direction of Pacer Lunt i.e., Pacer Lunt and Spinnaker ETF go up and down completely randomly.
Pair Corralation between Pacer Lunt and Spinnaker ETF
Given the investment horizon of 90 days Pacer Lunt Large is expected to generate 3.35 times more return on investment than Spinnaker ETF. However, Pacer Lunt is 3.35 times more volatile than Spinnaker ETF Series. It trades about 0.17 of its potential returns per unit of risk. Spinnaker ETF Series is currently generating about 0.08 per unit of risk. If you would invest 3,640 in Pacer Lunt Large on September 4, 2024 and sell it today you would earn a total of 1,606 from holding Pacer Lunt Large or generate 44.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 50.75% |
| Values | Daily Returns |
Pacer Lunt Large vs. Spinnaker ETF Series
Performance |
| Timeline |
| Pacer Lunt Large |
| Spinnaker ETF Series |
Pacer Lunt and Spinnaker ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pacer Lunt and Spinnaker ETF
The main advantage of trading using opposite Pacer Lunt and Spinnaker ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pacer Lunt position performs unexpectedly, Spinnaker ETF 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 Spinnaker ETF will offset losses from the drop in Spinnaker ETF's long position.| Pacer Lunt vs. Pacer Lunt Large | Pacer Lunt vs. Pacer Lunt MidCap | Pacer Lunt vs. Pacer Trendpilot Bond | Pacer Lunt vs. Pacer Small Cap |
| Spinnaker ETF vs. Valued Advisers Trust | Spinnaker ETF vs. Columbia Diversified Fixed | Spinnaker ETF vs. Principal Exchange Traded Funds | Spinnaker ETF vs. Doubleline Etf Trust |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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