Correlation Between Pacer Lunt and PGIM ETF
Can any of the company-specific risk be diversified away by investing in both Pacer Lunt and PGIM 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 PGIM 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 PGIM ETF Trust, you can compare the effects of market volatilities on Pacer Lunt and PGIM 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 PGIM ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pacer Lunt and PGIM ETF.
Diversification Opportunities for Pacer Lunt and PGIM ETF
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pacer and PGIM is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Pacer Lunt Large and PGIM ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PGIM ETF Trust 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 PGIM ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PGIM ETF Trust has no effect on the direction of Pacer Lunt i.e., Pacer Lunt and PGIM ETF go up and down completely randomly.
Pair Corralation between Pacer Lunt and PGIM ETF
Given the investment horizon of 90 days Pacer Lunt Large is expected to generate 2.32 times more return on investment than PGIM ETF. However, Pacer Lunt is 2.32 times more volatile than PGIM ETF Trust. It trades about 0.23 of its potential returns per unit of risk. PGIM ETF Trust is currently generating about 0.03 per unit of risk. If you would invest 4,592 in Pacer Lunt Large on September 5, 2024 and sell it today you would earn a total of 635.00 from holding Pacer Lunt Large or generate 13.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.82% |
| Values | Daily Returns |
Pacer Lunt Large vs. PGIM ETF Trust
Performance |
| Timeline |
| Pacer Lunt Large |
| PGIM ETF Trust |
Pacer Lunt and PGIM ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pacer Lunt and PGIM ETF
The main advantage of trading using opposite Pacer Lunt and PGIM ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pacer Lunt position performs unexpectedly, PGIM 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 PGIM ETF will offset losses from the drop in PGIM ETF's long position.| Pacer Lunt vs. Vanguard Total Stock | Pacer Lunt vs. SPDR SP 500 | Pacer Lunt vs. iShares Core SP | Pacer Lunt vs. Vanguard Dividend Appreciation |
| PGIM ETF vs. ClearShares Ultra Short Maturity | PGIM ETF vs. PGIM Active High | PGIM ETF vs. Pacer Trendpilot Bond | PGIM ETF vs. Pacer Lunt Large |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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