Correlation Between Swan Hedged and Pacer Funds
Can any of the company-specific risk be diversified away by investing in both Swan Hedged and Pacer Funds 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 Swan Hedged and Pacer Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Swan Hedged Equity and Pacer Funds Trust, you can compare the effects of market volatilities on Swan Hedged and Pacer Funds 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 Swan Hedged with a short position of Pacer Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swan Hedged and Pacer Funds.
Diversification Opportunities for Swan Hedged and Pacer Funds
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Swan and Pacer is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Swan Hedged Equity and Pacer Funds Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pacer Funds Trust and Swan Hedged 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 Swan Hedged Equity are associated (or correlated) with Pacer Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pacer Funds Trust has no effect on the direction of Swan Hedged i.e., Swan Hedged and Pacer Funds go up and down completely randomly.
Pair Corralation between Swan Hedged and Pacer Funds
Given the investment horizon of 90 days Swan Hedged is expected to generate 1.29 times less return on investment than Pacer Funds. In addition to that, Swan Hedged is 1.66 times more volatile than Pacer Funds Trust. It trades about 0.07 of its total potential returns per unit of risk. Pacer Funds Trust is currently generating about 0.15 per unit of volatility. If you would invest 3,164 in Pacer Funds Trust on October 9, 2025 and sell it today you would earn a total of 81.00 from holding Pacer Funds Trust or generate 2.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Swan Hedged Equity vs. Pacer Funds Trust
Performance |
| Timeline |
| Swan Hedged Equity |
| Pacer Funds Trust |
Swan Hedged and Pacer Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swan Hedged and Pacer Funds
The main advantage of trading using opposite Swan Hedged and Pacer Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swan Hedged position performs unexpectedly, Pacer Funds 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 Funds will offset losses from the drop in Pacer Funds' long position.| Swan Hedged vs. Jpmorgan Active Small | Swan Hedged vs. First Trust Dividend | Swan Hedged vs. Matthews China Active | Swan Hedged vs. First Trust Horizon |
| Pacer Funds vs. Swan Hedged Equity | Pacer Funds vs. ALPS Equal Sector | Pacer Funds vs. Harbor ETF Trust | Pacer Funds vs. Goldman Sachs JUST |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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