Correlation Between Pacer Funds and MARRIOTT
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By analyzing existing cross correlation between Pacer Funds Trust and MARRIOTT INTERNATIONAL INC, you can compare the effects of market volatilities on Pacer Funds and MARRIOTT 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 MARRIOTT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pacer Funds and MARRIOTT.
Diversification Opportunities for Pacer Funds and MARRIOTT
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pacer and MARRIOTT is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Pacer Funds Trust and MARRIOTT INTERNATIONAL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MARRIOTT INTERNATIONAL 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 MARRIOTT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MARRIOTT INTERNATIONAL has no effect on the direction of Pacer Funds i.e., Pacer Funds and MARRIOTT go up and down completely randomly.
Pair Corralation between Pacer Funds and MARRIOTT
Given the investment horizon of 90 days Pacer Funds Trust is expected to generate 2.32 times more return on investment than MARRIOTT. However, Pacer Funds is 2.32 times more volatile than MARRIOTT INTERNATIONAL INC. It trades about 0.11 of its potential returns per unit of risk. MARRIOTT INTERNATIONAL INC is currently generating about -0.17 per unit of risk. If you would invest 4,655 in Pacer Funds Trust on September 24, 2024 and sell it today you would earn a total of 469.00 from holding Pacer Funds Trust or generate 10.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Pacer Funds Trust vs. MARRIOTT INTERNATIONAL INC
Performance |
Timeline |
Pacer Funds Trust |
MARRIOTT INTERNATIONAL |
Pacer Funds and MARRIOTT Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pacer Funds and MARRIOTT
The main advantage of trading using opposite Pacer Funds and MARRIOTT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pacer Funds position performs unexpectedly, MARRIOTT 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 MARRIOTT will offset losses from the drop in MARRIOTT's long position.Pacer Funds vs. iShares Semiconductor ETF | Pacer Funds vs. Technology Select Sector | Pacer Funds vs. Financial Select Sector | Pacer Funds vs. Consumer Discretionary Select |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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