Correlation Between Pacer Financial and Kelly Strategic
Can any of the company-specific risk be diversified away by investing in both Pacer Financial and Kelly Strategic 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 Financial and Kelly Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pacer Financial and Kelly Strategic Management, you can compare the effects of market volatilities on Pacer Financial and Kelly Strategic 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 Financial with a short position of Kelly Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pacer Financial and Kelly Strategic.
Diversification Opportunities for Pacer Financial and Kelly Strategic
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pacer and Kelly is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Pacer Financial and Kelly Strategic Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kelly Strategic Mana and Pacer Financial 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 Financial are associated (or correlated) with Kelly Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kelly Strategic Mana has no effect on the direction of Pacer Financial i.e., Pacer Financial and Kelly Strategic go up and down completely randomly.
Pair Corralation between Pacer Financial and Kelly Strategic
Considering the 90-day investment horizon Pacer Financial is expected to generate 2.15 times more return on investment than Kelly Strategic. However, Pacer Financial is 2.15 times more volatile than Kelly Strategic Management. It trades about 0.06 of its potential returns per unit of risk. Kelly Strategic Management is currently generating about 0.05 per unit of risk. If you would invest 598.00 in Pacer Financial on September 3, 2024 and sell it today you would earn a total of 142.00 from holding Pacer Financial or generate 23.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pacer Financial vs. Kelly Strategic Management
Performance |
| Timeline |
| Pacer Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Kelly Strategic Mana |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Pacer Financial and Kelly Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pacer Financial and Kelly Strategic
The main advantage of trading using opposite Pacer Financial and Kelly Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pacer Financial position performs unexpectedly, Kelly Strategic 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 Kelly Strategic will offset losses from the drop in Kelly Strategic's long position.| Pacer Financial vs. Vanguard Real Estate | Pacer Financial vs. Howard Hughes | Pacer Financial vs. The Real Estate | Pacer Financial vs. Site Centers Corp |
| Kelly Strategic vs. Vanguard Real Estate | Kelly Strategic vs. Howard Hughes | Kelly Strategic vs. The Real Estate | Kelly Strategic vs. Site Centers Corp |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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