Correlation Between IShares Trust and Pnc International
Can any of the company-specific risk be diversified away by investing in both IShares Trust 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 IShares Trust and Pnc International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Trust and Pnc International Equity, you can compare the effects of market volatilities on IShares Trust 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 IShares Trust with a short position of Pnc International. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Trust and Pnc International.
Diversification Opportunities for IShares Trust and Pnc International
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IShares and Pnc is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding iShares Trust 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 IShares Trust 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 iShares Trust 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 IShares Trust i.e., IShares Trust and Pnc International go up and down completely randomly.
Pair Corralation between IShares Trust and Pnc International
Given the investment horizon of 90 days IShares Trust is expected to generate 1.75 times less return on investment than Pnc International. But when comparing it to its historical volatility, iShares Trust is 4.76 times less risky than Pnc International. It trades about 0.18 of its potential returns per unit of risk. Pnc International Equity is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,285 in Pnc International Equity on June 6, 2025 and sell it today you would earn a total of 65.00 from holding Pnc International Equity or generate 2.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Trust vs. Pnc International Equity
Performance |
| Timeline |
| iShares Trust |
| Pnc International Equity |
IShares Trust and Pnc International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Trust and Pnc International
The main advantage of trading using opposite IShares Trust and Pnc International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Trust 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.| IShares Trust vs. iShares Trust | IShares Trust vs. iShares Trust | IShares Trust vs. Simplify Volatility Premium | IShares Trust vs. Tidal Trust II |
| Pnc International vs. Federated Hermes Mdt | Pnc International vs. Federated Mdt Large | Pnc International vs. Federated High Income | Pnc International vs. Federated Hermes Intermediate |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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