Correlation Between Pnc International and Allianzgi Nfj

Can any of the company-specific risk be diversified away by investing in both Pnc International and Allianzgi Nfj 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 Allianzgi Nfj 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 Allianzgi Nfj International, you can compare the effects of market volatilities on Pnc International and Allianzgi Nfj 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 Allianzgi Nfj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pnc International and Allianzgi Nfj.

Diversification Opportunities for Pnc International and Allianzgi Nfj

0.88

Correlation Coefficient

Pnc International  Allianzgi Nfj

Very poor diversification

The 3 months correlation between Pnc and Allianzgi is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Pnc International Equity and Allianzgi Nfj International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Nfj Intern 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 Allianzgi Nfj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Nfj Intern has no effect on the direction of Pnc International i.e., Pnc International and Allianzgi Nfj go up and down completely randomly.

Pair Corralation between Pnc International and Allianzgi Nfj

Assuming the 90 days horizon Pnc International Equity is expected to generate 0.81 times more return on investment than Allianzgi Nfj. However, Pnc International Equity is 1.24 times less risky than Allianzgi Nfj. It trades about 0.58 of its potential returns per unit of risk. Allianzgi Nfj International is currently generating about 0.35 per unit of risk. If you would invest  2,148  in Pnc International Equity on February 11, 2025 and sell it today you would earn a total of  173.00  from holding Pnc International Equity or generate 8.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Pnc International Equity  vs.  Allianzgi Nfj International

Pnc International Equity

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Pnc International Equity are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Pnc International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Allianzgi Nfj Intern

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Allianzgi Nfj International are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Allianzgi Nfj may actually be approaching a critical reversion point that can send shares even higher in June 2025.

Pair Trading with Pnc International and Allianzgi Nfj

The main advantage of trading using opposite Pnc International and Allianzgi Nfj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pnc International position performs unexpectedly, Allianzgi Nfj 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 Allianzgi Nfj will offset losses from the drop in Allianzgi Nfj's long position.

The idea behind Pnc International Equity and Allianzgi Nfj International 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.