Correlation Between Capital World and Pfg Global
Can any of the company-specific risk be diversified away by investing in both Capital World and Pfg Global 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 Capital World and Pfg Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capital World Growth and Pfg Global Equity, you can compare the effects of market volatilities on Capital World and Pfg Global 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 Capital World with a short position of Pfg Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital World and Pfg Global.
Diversification Opportunities for Capital World and Pfg Global
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Capital and Pfg is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Capital World Growth and Pfg Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pfg Global Equity and Capital World 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 Capital World Growth are associated (or correlated) with Pfg Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pfg Global Equity has no effect on the direction of Capital World i.e., Capital World and Pfg Global go up and down completely randomly.
Pair Corralation between Capital World and Pfg Global
Assuming the 90 days horizon Capital World is expected to generate 1.07 times less return on investment than Pfg Global. In addition to that, Capital World is 1.02 times more volatile than Pfg Global Equity. It trades about 0.12 of its total potential returns per unit of risk. Pfg Global Equity is currently generating about 0.13 per unit of volatility. If you would invest 1,187 in Pfg Global Equity on July 19, 2025 and sell it today you would earn a total of 67.00 from holding Pfg Global Equity or generate 5.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.44% |
| Values | Daily Returns |
Capital World Growth vs. Pfg Global Equity
Performance |
| Timeline |
| Capital World Growth |
| Pfg Global Equity |
Capital World and Pfg Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital World and Pfg Global
The main advantage of trading using opposite Capital World and Pfg Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital World position performs unexpectedly, Pfg Global 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 Pfg Global will offset losses from the drop in Pfg Global's long position.| Capital World vs. Capital Income Builder | Capital World vs. Growth Fund Of | Capital World vs. American Funds Fundamental | Capital World vs. Income Fund Of |
| Pfg Global vs. Riskproreg Pfg 0 15 | Pfg Global vs. Pfg American Funds | Pfg Global vs. Riskproreg Dynamic 0 10 | Pfg Global vs. Pfg American Funds |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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