Correlation Between Pace International and Timothy Large/mip-cap

Can any of the company-specific risk be diversified away by investing in both Pace International and Timothy Large/mip-cap 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 Pace International and Timothy Large/mip-cap into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Pace International Emerging and Timothy Largemip Cap Growth, you can compare the effects of market volatilities on Pace International and Timothy Large/mip-cap 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 Pace International with a short position of Timothy Large/mip-cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pace International and Timothy Large/mip-cap.

Diversification Opportunities for Pace International and Timothy Large/mip-cap

0.93

Correlation Coefficient

Pace International  Timothy Large/mip-cap

Almost no diversification

The 3 months correlation between Pace and Timothy is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Pace International Emerging and Timothy Largemip Cap Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Timothy Large/mip-cap and Pace International 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 Pace International Emerging are associated (or correlated) with Timothy Large/mip-cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Timothy Large/mip-cap has no effect on the direction of Pace International i.e., Pace International and Timothy Large/mip-cap go up and down completely randomly.

Pair Corralation between Pace International and Timothy Large/mip-cap

Assuming the 90 days horizon Pace International Emerging is expected to generate 1.1 times more return on investment than Timothy Large/mip-cap. However, Pace International is 1.1 times more volatile than Timothy Largemip Cap Growth. It trades about 0.26 of its potential returns per unit of risk. Timothy Largemip Cap Growth is currently generating about 0.1 per unit of risk. If you would invest  1,526  in Pace International Emerging on August 4, 2025 and sell it today you would earn a total of  241.00  from holding Pace International Emerging or generate 15.79% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Pace International Emerging  vs.  Timothy Largemip Cap Growth

Pace International

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Pace International Emerging are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak primary indicators, Pace International showed solid returns over the last few months and may actually be approaching a breakup point.

Timothy Large/mip-cap

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Timothy Largemip Cap Growth are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Timothy Large/mip-cap is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Pace International and Timothy Large/mip-cap

The main advantage of trading using opposite Pace International and Timothy Large/mip-cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pace International position performs unexpectedly, Timothy Large/mip-cap 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 Timothy Large/mip-cap will offset losses from the drop in Timothy Large/mip-cap's long position.

The idea behind Pace International Emerging and Timothy Largemip Cap Growth pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.