Correlation Between Federated Short-intermedia and Pnc International

Can any of the company-specific risk be diversified away by investing in both Federated Short-intermedia 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 Federated Short-intermedia and Pnc International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Federated Short Intermediate Duration and Pnc International Equity, you can compare the effects of market volatilities on Federated Short-intermedia 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 Federated Short-intermedia with a short position of Pnc International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Short-intermedia and Pnc International.

Diversification Opportunities for Federated Short-intermedia and Pnc International

0.93

Correlation Coefficient

Federated Short-intermedia  Pnc International

Almost no diversification

The 3 months correlation between Federated and Pnc is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Federated Short Intermediate D 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 Federated Short-intermedia 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 Federated Short Intermediate Duration 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 Federated Short-intermedia i.e., Federated Short-intermedia and Pnc International go up and down completely randomly.

Pair Corralation between Federated Short-intermedia and Pnc International

Assuming the 90 days horizon Federated Short-intermedia is expected to generate 7.22 times less return on investment than Pnc International. But when comparing it to its historical volatility, Federated Short Intermediate Duration is 7.01 times less risky than Pnc International. It trades about 0.33 of its potential returns per unit of risk. Pnc International Equity is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest  2,183  in Pnc International Equity on April 20, 2025 and sell it today you would earn a total of  316.00  from holding Pnc International Equity or generate 14.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.41%
Values	Daily Returns

Federated Short Intermediate D  vs.  Pnc International Equity

Federated Short-intermedia

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Federated Short Intermediate Duration are ranked lower than 26 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Federated Short-intermedia is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pnc International Equity

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Pnc International Equity are ranked lower than 26 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Pnc International showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Federated Short-intermedia and Pnc International

The main advantage of trading using opposite Federated Short-intermedia and Pnc International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Short-intermedia 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.

The idea behind Federated Short Intermediate Duration and Pnc International Equity pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.