Correlation Between Elfun Government and Pnc International
Can any of the company-specific risk be diversified away by investing in both Elfun Government and Pnc 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 Elfun Government and Pnc International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elfun Government Money and Pnc International Equity, you can compare the effects of market volatilities on Elfun Government and Pnc 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 Elfun Government with a short position of Pnc International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Pnc International.
Diversification Opportunities for Elfun Government and Pnc International
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Elfun and Pnc is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and Pnc International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pnc International Equity and Elfun Government 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 Elfun Government Money are associated (or correlated) with Pnc International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pnc International Equity has no effect on the direction of Elfun Government i.e., Elfun Government and Pnc International go up and down completely randomly.
Pair Corralation between Elfun Government and Pnc International
Assuming the 90 days horizon Elfun Government is expected to generate 10.93 times less return on investment than Pnc International. But when comparing it to its historical volatility, Elfun Government Money is 4.73 times less risky than Pnc International. It trades about 0.13 of its potential returns per unit of risk. Pnc International Equity is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 2,076 in Pnc International Equity on April 23, 2025 and sell it today you would earn a total of 228.00 from holding Pnc International Equity or generate 10.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.31% |
| Values | Daily Returns |
Elfun Government Money vs. Pnc International Equity
Performance |
| Timeline |
| Elfun Government Money |
| Pnc International Equity |
Elfun Government and Pnc International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and Pnc International
The main advantage of trading using opposite Elfun Government and Pnc International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, Pnc 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 Pnc International will offset losses from the drop in Pnc International's long position.| Elfun Government vs. Aqr Small Cap | Elfun Government vs. Needham Small Cap | Elfun Government vs. Nuveen Nwq Smallmid Cap | Elfun Government vs. Lebenthal Lisanti Small |
| Pnc International vs. Shelton Funds | Pnc International vs. Ab Value Fund | Pnc International vs. Qs Growth Fund | Pnc International vs. Gmo Quality Fund |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |