Correlation Between Vanguard Global and Pnc International

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

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

Diversification Opportunities for Vanguard Global and Pnc International

0.95

Correlation Coefficient

Vanguard Global  Pnc International

Almost no diversification

The 3 months correlation between Vanguard and Pnc is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Global Equity 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 Vanguard Global 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 Vanguard Global Equity 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 Vanguard Global i.e., Vanguard Global and Pnc International go up and down completely randomly.

Pair Corralation between Vanguard Global and Pnc International

Assuming the 90 days horizon Vanguard Global Equity is expected to generate 1.22 times more return on investment than Pnc International. However, Vanguard Global is 1.22 times more volatile than Pnc International Equity. It trades about 0.21 of its potential returns per unit of risk. Pnc International Equity is currently generating about 0.11 per unit of risk. If you would invest  3,535  in Vanguard Global Equity on May 6, 2025 and sell it today you would earn a total of  396.00  from holding Vanguard Global Equity or generate 11.2% return on investment over 90 days.

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

Vanguard Global Equity  vs.  Pnc International Equity

Vanguard Global Equity

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Vanguard Global Equity are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Vanguard Global may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pnc International Equity

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Pnc International Equity are ranked lower than 8 (%) 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.

Pair Trading with Vanguard Global and Pnc International

The main advantage of trading using opposite Vanguard Global and Pnc International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Global 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 Vanguard Global Equity 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.