Correlation Between Pnc International and Eic Value
Can any of the company-specific risk be diversified away by investing in both Pnc International and Eic Value 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 Pnc International and Eic Value into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pnc International Equity and Eic Value Fund, you can compare the effects of market volatilities on Pnc International and Eic Value 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 Pnc International with a short position of Eic Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pnc International and Eic Value.
Diversification Opportunities for Pnc International and Eic Value
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Pnc and Eic is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Pnc International Equity and Eic Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eic Value Fund and Pnc 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 Pnc International Equity are associated (or correlated) with Eic Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eic Value Fund has no effect on the direction of Pnc International i.e., Pnc International and Eic Value go up and down completely randomly.
Pair Corralation between Pnc International and Eic Value
Assuming the 90 days horizon Pnc International is expected to generate 1.71 times less return on investment than Eic Value. In addition to that, Pnc International is 1.01 times more volatile than Eic Value Fund. It trades about 0.1 of its total potential returns per unit of risk. Eic Value Fund is currently generating about 0.17 per unit of volatility. If you would invest 1,799 in Eic Value Fund on May 31, 2025 and sell it today you would earn a total of 137.00 from holding Eic Value Fund or generate 7.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pnc International Equity vs. Eic Value Fund
Performance |
| Timeline |
| Pnc International Equity |
| Eic Value Fund |
Pnc International and Eic Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pnc International and Eic Value
The main advantage of trading using opposite Pnc International and Eic Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pnc International position performs unexpectedly, Eic Value 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 Eic Value will offset losses from the drop in Eic Value's long position.| Pnc International vs. Federated Emerging Market | Pnc International vs. Federated Mdt All | Pnc International vs. Federated Mdt Balanced | Pnc International vs. Federated Global Allocation |
| Eic Value vs. Eic Value Fund | Eic Value vs. Eic Value Fund | Eic Value vs. Fidelity Select Semiconductors | Eic Value vs. Caldwell Orkin Market |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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