Correlation Between Growth Allocation and Pace Strategic
Can any of the company-specific risk be diversified away by investing in both Growth Allocation and Pace Strategic 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 Growth Allocation and Pace Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Allocation Fund and Pace Strategic Fixed, you can compare the effects of market volatilities on Growth Allocation and Pace Strategic 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 Growth Allocation with a short position of Pace Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Allocation and Pace Strategic.
Diversification Opportunities for Growth Allocation and Pace Strategic
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Growth and Pace is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Growth Allocation Fund and Pace Strategic Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pace Strategic Fixed and Growth Allocation 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 Growth Allocation Fund are associated (or correlated) with Pace Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pace Strategic Fixed has no effect on the direction of Growth Allocation i.e., Growth Allocation and Pace Strategic go up and down completely randomly.
Pair Corralation between Growth Allocation and Pace Strategic
Assuming the 90 days horizon Growth Allocation Fund is expected to generate 2.12 times more return on investment than Pace Strategic. However, Growth Allocation is 2.12 times more volatile than Pace Strategic Fixed. It trades about 0.18 of its potential returns per unit of risk. Pace Strategic Fixed is currently generating about 0.21 per unit of risk. If you would invest 1,343 in Growth Allocation Fund on June 7, 2025 and sell it today you would earn a total of 70.00 from holding Growth Allocation Fund or generate 5.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Growth Allocation Fund vs. Pace Strategic Fixed
Performance |
| Timeline |
| Growth Allocation |
| Pace Strategic Fixed |
Growth Allocation and Pace Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Allocation and Pace Strategic
The main advantage of trading using opposite Growth Allocation and Pace Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Allocation position performs unexpectedly, Pace Strategic 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 Pace Strategic will offset losses from the drop in Pace Strategic's long position.| Growth Allocation vs. Balanced Fund Retail | Growth Allocation vs. Nuveen Equity Longshort | Growth Allocation vs. Rbc China Equity | Growth Allocation vs. Enhanced Fixed Income |
| Pace Strategic vs. Versatile Bond Portfolio | Pace Strategic vs. Vanguard Intermediate Term Tax Exempt | Pace Strategic vs. Bbh Intermediate Municipal | Pace Strategic vs. Multisector Bond Sma |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |