Correlation Between PNC Technologies and DB Insurance
Can any of the company-specific risk be diversified away by investing in both PNC Technologies and DB Insurance 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 Technologies and DB Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PNC Technologies co and DB Insurance Co, you can compare the effects of market volatilities on PNC Technologies and DB Insurance 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 Technologies with a short position of DB Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of PNC Technologies and DB Insurance.
Diversification Opportunities for PNC Technologies and DB Insurance
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PNC and 005830 is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding PNC Technologies co and DB Insurance Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DB Insurance and PNC Technologies 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 Technologies co are associated (or correlated) with DB Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DB Insurance has no effect on the direction of PNC Technologies i.e., PNC Technologies and DB Insurance go up and down completely randomly.
Pair Corralation between PNC Technologies and DB Insurance
Assuming the 90 days trading horizon PNC Technologies co is expected to generate 1.08 times more return on investment than DB Insurance. However, PNC Technologies is 1.08 times more volatile than DB Insurance Co. It trades about 0.38 of its potential returns per unit of risk. DB Insurance Co is currently generating about -0.08 per unit of risk. If you would invest 355,399 in PNC Technologies co on October 11, 2024 and sell it today you would earn a total of 61,101 from holding PNC Technologies co or generate 17.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PNC Technologies co vs. DB Insurance Co
Performance |
| Timeline |
| PNC Technologies |
| DB Insurance |
PNC Technologies and DB Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PNC Technologies and DB Insurance
The main advantage of trading using opposite PNC Technologies and DB Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PNC Technologies position performs unexpectedly, DB Insurance 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 DB Insurance will offset losses from the drop in DB Insurance's long position.| PNC Technologies vs. Samlip General Foods | PNC Technologies vs. Korea Investment Holdings | PNC Technologies vs. SBI Investment KOREA | PNC Technologies vs. Foodnamoo |
| DB Insurance vs. Orbitech Co | DB Insurance vs. Sung Bo Chemicals | DB Insurance vs. PNC Technologies co | DB Insurance vs. KMH Hitech Co |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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