Correlation Between Pacer Lunt and IShares MSCI
Can any of the company-specific risk be diversified away by investing in both Pacer Lunt and IShares MSCI 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 Pacer Lunt and IShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pacer Lunt Large and iShares MSCI China, you can compare the effects of market volatilities on Pacer Lunt and IShares MSCI 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 Pacer Lunt with a short position of IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pacer Lunt and IShares MSCI.
Diversification Opportunities for Pacer Lunt and IShares MSCI
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pacer and IShares is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Pacer Lunt Large and iShares MSCI China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI China and Pacer Lunt 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 Pacer Lunt Large are associated (or correlated) with IShares MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares MSCI China has no effect on the direction of Pacer Lunt i.e., Pacer Lunt and IShares MSCI go up and down completely randomly.
Pair Corralation between Pacer Lunt and IShares MSCI
Given the investment horizon of 90 days Pacer Lunt Large is expected to generate 0.94 times more return on investment than IShares MSCI. However, Pacer Lunt Large is 1.07 times less risky than IShares MSCI. It trades about 0.02 of its potential returns per unit of risk. iShares MSCI China is currently generating about -0.09 per unit of risk. If you would invest 5,151 in Pacer Lunt Large on September 11, 2025 and sell it today you would earn a total of 15.00 from holding Pacer Lunt Large or generate 0.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pacer Lunt Large vs. iShares MSCI China
Performance |
| Timeline |
| Pacer Lunt Large |
| iShares MSCI China |
Pacer Lunt and IShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pacer Lunt and IShares MSCI
The main advantage of trading using opposite Pacer Lunt and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pacer Lunt position performs unexpectedly, IShares MSCI 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 IShares MSCI will offset losses from the drop in IShares MSCI's long position.| Pacer Lunt vs. Northern Lights | Pacer Lunt vs. AGFiQ Market Neutral | Pacer Lunt vs. Segall Bryant Hamill | Pacer Lunt vs. Innovator Russell 2000 |
| IShares MSCI vs. KraneShares Bosera MSCI | IShares MSCI vs. iShares Currency Hedged | IShares MSCI vs. Invesco SP SmallCap | IShares MSCI vs. Pacer Lunt 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |