Correlation Between Strategy Shares and Pacer Global
Can any of the company-specific risk be diversified away by investing in both Strategy Shares 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 Strategy Shares and Pacer Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strategy Shares and Pacer Global Cash, you can compare the effects of market volatilities on Strategy Shares 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 Strategy Shares with a short position of Pacer Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strategy Shares and Pacer Global.
Diversification Opportunities for Strategy Shares and Pacer Global
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Strategy and Pacer is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Strategy Shares 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 Strategy Shares 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 Strategy Shares 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 Strategy Shares i.e., Strategy Shares and Pacer Global go up and down completely randomly.
Pair Corralation between Strategy Shares and Pacer Global
Given the investment horizon of 90 days Strategy Shares is expected to generate 2.94 times less return on investment than Pacer Global. But when comparing it to its historical volatility, Strategy Shares is 2.41 times less risky than Pacer Global. It trades about 0.11 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 3,961 in Pacer Global Cash on September 4, 2025 and sell it today you would earn a total of 187.00 from holding Pacer Global Cash or generate 4.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Strategy Shares vs. Pacer Global Cash
Performance |
| Timeline |
| Strategy Shares |
| Pacer Global Cash |
Strategy Shares and Pacer Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strategy Shares and Pacer Global
The main advantage of trading using opposite Strategy Shares and Pacer Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strategy Shares 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.| Strategy Shares vs. Freedom Day Dividend | Strategy Shares vs. Franklin Templeton ETF | Strategy Shares vs. iShares MSCI China | Strategy Shares vs. YieldMax Short NVDA |
| Pacer Global vs. Strategy Shares | Pacer Global vs. Freedom Day Dividend | Pacer Global vs. Franklin Templeton ETF | Pacer Global 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |