Correlation Between FlexShares Real and Pacer Global
Can any of the company-specific risk be diversified away by investing in both FlexShares Real and Pacer Global 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 FlexShares Real and Pacer Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FlexShares Real Assets and Pacer Global Cash, you can compare the effects of market volatilities on FlexShares Real and Pacer Global 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 FlexShares Real with a short position of Pacer Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of FlexShares Real and Pacer Global.
Diversification Opportunities for FlexShares Real and Pacer Global
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between FlexShares and Pacer is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding FlexShares Real Assets and Pacer Global Cash in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pacer Global Cash and FlexShares Real 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 FlexShares Real Assets are associated (or correlated) with Pacer Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pacer Global Cash has no effect on the direction of FlexShares Real i.e., FlexShares Real and Pacer Global go up and down completely randomly.
Pair Corralation between FlexShares Real and Pacer Global
Given the investment horizon of 90 days FlexShares Real is expected to generate 1.48 times less return on investment than Pacer Global. But when comparing it to its historical volatility, FlexShares Real Assets is 1.15 times less risky than Pacer Global. It trades about 0.1 of its potential returns per unit of risk. Pacer Global Cash is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 3,749 in Pacer Global Cash on June 7, 2025 and sell it today you would earn a total of 222.00 from holding Pacer Global Cash or generate 5.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
FlexShares Real Assets vs. Pacer Global Cash
Performance |
| Timeline |
| FlexShares Real Assets |
| Pacer Global Cash |
FlexShares Real and Pacer Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FlexShares Real and Pacer Global
The main advantage of trading using opposite FlexShares Real and Pacer Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FlexShares Real position performs unexpectedly, Pacer Global 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 Pacer Global will offset losses from the drop in Pacer Global's long position.| FlexShares Real vs. WisdomTree Interest Rate | FlexShares Real vs. VictoryShares International Volatility | FlexShares Real vs. First Trust Developed |
| Pacer Global vs. Pacer Cash Cows | Pacer Global vs. Pacer Small Cap | Pacer Global vs. Pacer Developed Markets | Pacer Global vs. Pacer Trendpilot 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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