Correlation Between PNC Financial and Kitron ASA
Can any of the company-specific risk be diversified away by investing in both PNC Financial and Kitron ASA 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 Financial and Kitron ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PNC Financial Services and Kitron ASA, you can compare the effects of market volatilities on PNC Financial and Kitron ASA 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 Financial with a short position of Kitron ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of PNC Financial and Kitron ASA.
Diversification Opportunities for PNC Financial and Kitron ASA
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PNC and Kitron is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding PNC Financial Services and Kitron ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kitron ASA and PNC Financial 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 Financial Services are associated (or correlated) with Kitron ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kitron ASA has no effect on the direction of PNC Financial i.e., PNC Financial and Kitron ASA go up and down completely randomly.
Pair Corralation between PNC Financial and Kitron ASA
Considering the 90-day investment horizon PNC Financial Services is expected to generate 0.54 times more return on investment than Kitron ASA. However, PNC Financial Services is 1.86 times less risky than Kitron ASA. It trades about 0.24 of its potential returns per unit of risk. Kitron ASA is currently generating about -0.02 per unit of risk. If you would invest 17,359 in PNC Financial Services on May 29, 2025 and sell it today you would earn a total of 3,245 from holding PNC Financial Services or generate 18.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PNC Financial Services vs. Kitron ASA
Performance |
| Timeline |
| PNC Financial Services |
| Kitron ASA |
PNC Financial and Kitron ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PNC Financial and Kitron ASA
The main advantage of trading using opposite PNC Financial and Kitron ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PNC Financial position performs unexpectedly, Kitron ASA 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 Kitron ASA will offset losses from the drop in Kitron ASA's long position.| PNC Financial vs. Truist Financial Corp | PNC Financial vs. KeyCorp | PNC Financial vs. Western Alliance Bancorporation | PNC Financial vs. Zions Bancorporation |
| Kitron ASA vs. Europris ASA | Kitron ASA vs. Kongsberg Gruppen ASA | Kitron ASA vs. Nordic Semiconductor ASA | Kitron ASA vs. Storebrand ASA |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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