Correlation Between Sa Emerging and Pace International
Can any of the company-specific risk be diversified away by investing in both Sa Emerging and Pace International 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 Sa Emerging and Pace International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sa Emerging Markets and Pace International Emerging, you can compare the effects of market volatilities on Sa Emerging and Pace International 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 Sa Emerging with a short position of Pace International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sa Emerging and Pace International.
Diversification Opportunities for Sa Emerging and Pace International
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SAEMX and Pace is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Sa Emerging Markets and Pace International Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pace International and Sa Emerging 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 Sa Emerging Markets are associated (or correlated) with Pace International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pace International has no effect on the direction of Sa Emerging i.e., Sa Emerging and Pace International go up and down completely randomly.
Pair Corralation between Sa Emerging and Pace International
Assuming the 90 days horizon Sa Emerging is expected to generate 1.67 times less return on investment than Pace International. But when comparing it to its historical volatility, Sa Emerging Markets is 1.08 times less risky than Pace International. It trades about 0.18 of its potential returns per unit of risk. Pace International Emerging is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 1,529 in Pace International Emerging on October 10, 2025 and sell it today you would earn a total of 231.00 from holding Pace International Emerging or generate 15.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sa Emerging Markets vs. Pace International Emerging
Performance |
| Timeline |
| Sa Emerging Markets |
| Pace International |
Sa Emerging and Pace International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sa Emerging and Pace International
The main advantage of trading using opposite Sa Emerging and Pace International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sa Emerging position performs unexpectedly, Pace International 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 International will offset losses from the drop in Pace International's long position.| Sa Emerging vs. Siit High Yield | Sa Emerging vs. Blrc Sgy Mnp | Sa Emerging vs. Flexible Bond Portfolio | Sa Emerging vs. The National Tax Free |
| Pace International vs. Extended Market Index | Pace International vs. T Rowe Price | Pace International vs. Angel Oak Multi Strategy | Pace International vs. T Rowe Price |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |