Correlation Between IShares JP and Pacer Metarus
Can any of the company-specific risk be diversified away by investing in both IShares JP and Pacer Metarus 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 IShares JP and Pacer Metarus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares JP Morgan and Pacer Metarus Nasdaq, you can compare the effects of market volatilities on IShares JP and Pacer Metarus 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 IShares JP with a short position of Pacer Metarus. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares JP and Pacer Metarus.
Diversification Opportunities for IShares JP and Pacer Metarus
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IShares and Pacer is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding iShares JP Morgan and Pacer Metarus Nasdaq in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pacer Metarus Nasdaq and IShares JP 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 iShares JP Morgan are associated (or correlated) with Pacer Metarus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pacer Metarus Nasdaq has no effect on the direction of IShares JP i.e., IShares JP and Pacer Metarus go up and down completely randomly.
Pair Corralation between IShares JP and Pacer Metarus
Given the investment horizon of 90 days IShares JP is expected to generate 2.8 times less return on investment than Pacer Metarus. But when comparing it to its historical volatility, iShares JP Morgan is 5.99 times less risky than Pacer Metarus. It trades about 0.19 of its potential returns per unit of risk. Pacer Metarus Nasdaq is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 3,538 in Pacer Metarus Nasdaq on August 27, 2025 and sell it today you would earn a total of 190.00 from holding Pacer Metarus Nasdaq or generate 5.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares JP Morgan vs. Pacer Metarus Nasdaq
Performance |
| Timeline |
| iShares JP Morgan |
| Pacer Metarus Nasdaq |
IShares JP and Pacer Metarus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares JP and Pacer Metarus
The main advantage of trading using opposite IShares JP and Pacer Metarus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares JP position performs unexpectedly, Pacer Metarus 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 Metarus will offset losses from the drop in Pacer Metarus' long position.| IShares JP vs. BondBloxx ETF Trust | IShares JP vs. Virtus ETF Trust | IShares JP vs. Vanguard High Yield Active | IShares JP vs. Virtus ETF Trust |
| Pacer Metarus vs. Strategy Shares | Pacer Metarus vs. Freedom Day Dividend | Pacer Metarus vs. Franklin Templeton ETF | Pacer Metarus vs. iShares MSCI China |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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