Correlation Between Pacer Financial and Loncar Cancer

Can any of the company-specific risk be diversified away by investing in both Pacer Financial and Loncar Cancer 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 Loncar Cancer into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Pacer Financial and Loncar Cancer Immunotherapy, you can compare the effects of market volatilities on Pacer Financial and Loncar Cancer 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 Loncar Cancer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pacer Financial and Loncar Cancer.

Diversification Opportunities for Pacer Financial and Loncar Cancer

-0.9

Correlation Coefficient

Pacer Financial  Loncar Cancer

Pay attention - limited upside

The 3 months correlation between Pacer and Loncar is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Pacer Financial and Loncar Cancer Immunotherapy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loncar Cancer Immuno 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 Loncar Cancer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loncar Cancer Immuno has no effect on the direction of Pacer Financial i.e., Pacer Financial and Loncar Cancer go up and down completely randomly.

Pair Corralation between Pacer Financial and Loncar Cancer

Given the investment horizon of 90 days Pacer Financial is expected to generate 0.35 times more return on investment than Loncar Cancer. However, Pacer Financial is 2.87 times less risky than Loncar Cancer. It trades about 0.1 of its potential returns per unit of risk. Loncar Cancer Immunotherapy is currently generating about -0.01 per unit of risk. If you would invest  2,933  in Pacer Financial on October 24, 2024 and sell it today you would earn a total of  1,070  from holding Pacer Financial or generate 36.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	86.44%
Values	Daily Returns

Pacer Financial  vs.  Loncar Cancer Immunotherapy

Pacer Financial

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pacer Financial has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Pacer Financial is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Loncar Cancer Immuno

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Loncar Cancer Immunotherapy has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Etf's fundamental indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the ETF retail investors.

Pair Trading with Pacer Financial and Loncar Cancer

The main advantage of trading using opposite Pacer Financial and Loncar Cancer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pacer Financial position performs unexpectedly, Loncar Cancer 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 Loncar Cancer will offset losses from the drop in Loncar Cancer's long position.

The idea behind Pacer Financial and Loncar Cancer Immunotherapy pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.