Correlation Between Pacer Funds and Nuveen Winslow
Can any of the company-specific risk be diversified away by investing in both Pacer Funds and Nuveen Winslow 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 Funds and Nuveen Winslow into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pacer Funds Trust and Nuveen Winslow Large Cap, you can compare the effects of market volatilities on Pacer Funds and Nuveen Winslow 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 Funds with a short position of Nuveen Winslow. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pacer Funds and Nuveen Winslow.
Diversification Opportunities for Pacer Funds and Nuveen Winslow
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Pacer and Nuveen is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Pacer Funds Trust and Nuveen Winslow Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Winslow Large and Pacer Funds 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 Funds Trust are associated (or correlated) with Nuveen Winslow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Winslow Large has no effect on the direction of Pacer Funds i.e., Pacer Funds and Nuveen Winslow go up and down completely randomly.
Pair Corralation between Pacer Funds and Nuveen Winslow
Given the investment horizon of 90 days Pacer Funds is expected to generate 2.1 times less return on investment than Nuveen Winslow. But when comparing it to its historical volatility, Pacer Funds Trust is 2.56 times less risky than Nuveen Winslow. It trades about 0.1 of its potential returns per unit of risk. Nuveen Winslow Large Cap is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3,299 in Nuveen Winslow Large Cap on August 30, 2024 and sell it today you would earn a total of 71.00 from holding Nuveen Winslow Large Cap or generate 2.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pacer Funds Trust vs. Nuveen Winslow Large Cap
Performance |
| Timeline |
| Pacer Funds Trust |
| Nuveen Winslow Large |
Pacer Funds and Nuveen Winslow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pacer Funds and Nuveen Winslow
The main advantage of trading using opposite Pacer Funds and Nuveen Winslow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pacer Funds position performs unexpectedly, Nuveen Winslow 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 Nuveen Winslow will offset losses from the drop in Nuveen Winslow's long position.| Pacer Funds vs. Pacer Swan SOS | Pacer Funds vs. Pacer Funds Trust | Pacer Funds vs. Pacer Swan SOS | Pacer Funds vs. First Trust Exchange |
| Nuveen Winslow vs. FT Vest Equity | Nuveen Winslow vs. Northern Lights | Nuveen Winslow vs. Dimensional International High | Nuveen Winslow vs. First Trust Exchange Traded |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |