Correlation Between Pnc International and Federated Global
Can any of the company-specific risk be diversified away by investing in both Pnc International and Federated 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 Pnc International and Federated Global 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 Federated Global Allocation, you can compare the effects of market volatilities on Pnc International and Federated 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 Pnc International with a short position of Federated Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pnc International and Federated Global.
Diversification Opportunities for Pnc International and Federated Global
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Pnc and Federated is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Pnc International Equity and Federated Global Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Global All 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 Federated Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Global All has no effect on the direction of Pnc International i.e., Pnc International and Federated Global go up and down completely randomly.
Pair Corralation between Pnc International and Federated Global
Assuming the 90 days horizon Pnc International Equity is expected to under-perform the Federated Global. In addition to that, Pnc International is 1.41 times more volatile than Federated Global Allocation. It trades about -0.02 of its total potential returns per unit of risk. Federated Global Allocation is currently generating about 0.25 per unit of volatility. If you would invest 2,062 in Federated Global Allocation on March 27, 2025 and sell it today you would earn a total of 45.00 from holding Federated Global Allocation or generate 2.18% 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. Federated Global Allocation
Performance |
| Timeline |
| Pnc International Equity |
| Federated Global All |
Pnc International and Federated Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pnc International and Federated Global
The main advantage of trading using opposite Pnc International and Federated Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pnc International position performs unexpectedly, Federated 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 Federated Global will offset losses from the drop in Federated Global's long position.| Pnc International vs. Target Retirement 2040 | Pnc International vs. Cornerstone Moderately Aggressive | Pnc International vs. Moderately Aggressive Balanced | Pnc International vs. Vanguard Target Retirement |
| Federated Global vs. Federated Total Return | Federated Global vs. Federated Max Cap Index | Federated Global vs. Federated Kaufmann Small | Federated Global vs. Federated U S |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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