Correlation Between Pacer Swan and AdvisorShares Dorsey
Can any of the company-specific risk be diversified away by investing in both Pacer Swan and AdvisorShares Dorsey 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 Swan and AdvisorShares Dorsey into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pacer Swan SOS and AdvisorShares Dorsey Wright, you can compare the effects of market volatilities on Pacer Swan and AdvisorShares Dorsey 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 Swan with a short position of AdvisorShares Dorsey. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pacer Swan and AdvisorShares Dorsey.
Diversification Opportunities for Pacer Swan and AdvisorShares Dorsey
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Pacer and AdvisorShares is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Pacer Swan SOS and AdvisorShares Dorsey Wright in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AdvisorShares Dorsey and Pacer Swan 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 Swan SOS are associated (or correlated) with AdvisorShares Dorsey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AdvisorShares Dorsey has no effect on the direction of Pacer Swan i.e., Pacer Swan and AdvisorShares Dorsey go up and down completely randomly.
Pair Corralation between Pacer Swan and AdvisorShares Dorsey
Given the investment horizon of 90 days Pacer Swan is expected to generate 2.15 times less return on investment than AdvisorShares Dorsey. But when comparing it to its historical volatility, Pacer Swan SOS is 3.49 times less risky than AdvisorShares Dorsey. It trades about 0.18 of its potential returns per unit of risk. AdvisorShares Dorsey Wright is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 4,168 in AdvisorShares Dorsey Wright on July 24, 2025 and sell it today you would earn a total of 207.00 from holding AdvisorShares Dorsey Wright or generate 4.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pacer Swan SOS vs. AdvisorShares Dorsey Wright
Performance |
| Timeline |
| Pacer Swan SOS |
| AdvisorShares Dorsey |
Pacer Swan and AdvisorShares Dorsey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pacer Swan and AdvisorShares Dorsey
The main advantage of trading using opposite Pacer Swan and AdvisorShares Dorsey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pacer Swan position performs unexpectedly, AdvisorShares Dorsey 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 AdvisorShares Dorsey will offset losses from the drop in AdvisorShares Dorsey's long position.| Pacer Swan vs. Pacer Funds Trust | Pacer Swan vs. Pacer Swan SOS | Pacer Swan vs. Pacer Swan SOS | Pacer Swan vs. Innovator ETFs Trust |
| AdvisorShares Dorsey vs. AdvisorShares Dorsey Wright | AdvisorShares Dorsey vs. Pacer Swan SOS | AdvisorShares Dorsey vs. Global X Funds | AdvisorShares Dorsey vs. Fidelity Disruptive Communications |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |