Correlation Between BF Investment and PNC Infratech

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both BF Investment and PNC Infratech 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 BF Investment and PNC Infratech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BF Investment Limited and PNC Infratech Limited, you can compare the effects of market volatilities on BF Investment and PNC Infratech 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 BF Investment with a short position of PNC Infratech. Check out your portfolio center. Please also check ongoing floating volatility patterns of BF Investment and PNC Infratech.

Diversification Opportunities for BF Investment and PNC Infratech

BFINVESTPNCDiversified AwayBFINVESTPNCDiversified Away100%
0.77
  Correlation Coefficient

Poor diversification

The 3 months correlation between BFINVEST and PNC is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding BF Investment Limited and PNC Infratech Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PNC Infratech Limited and BF Investment 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 BF Investment Limited are associated (or correlated) with PNC Infratech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PNC Infratech Limited has no effect on the direction of BF Investment i.e., BF Investment and PNC Infratech go up and down completely randomly.

Pair Corralation between BF Investment and PNC Infratech

Assuming the 90 days trading horizon BF Investment Limited is expected to under-perform the PNC Infratech. In addition to that, BF Investment is 1.08 times more volatile than PNC Infratech Limited. It trades about -0.41 of its total potential returns per unit of risk. PNC Infratech Limited is currently generating about -0.25 per unit of volatility. If you would invest  29,470  in PNC Infratech Limited on December 3, 2024 and sell it today you would lose (3,575) from holding PNC Infratech Limited or give up 12.13% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

BF Investment Limited  vs.  PNC Infratech Limited

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -30-20-10010
JavaScript chart by amCharts 3.21.15BFINVEST PNCINFRA
       Timeline  
BF Investment Limited 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days BF Investment Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.
JavaScript chart by amCharts 3.21.15JanFebFebMar450500550600650700750
PNC Infratech Limited 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days PNC Infratech Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest unsteady performance, the Stock's technical and fundamental indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.
JavaScript chart by amCharts 3.21.15JanFebFebMar260280300320340360

BF Investment and PNC Infratech Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-4.79-3.59-2.39-1.180.0150.91.82.73.6 0.0350.0400.0450.0500.055
JavaScript chart by amCharts 3.21.15BFINVEST PNCINFRA
       Returns  

Pair Trading with BF Investment and PNC Infratech

The main advantage of trading using opposite BF Investment and PNC Infratech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BF Investment position performs unexpectedly, PNC Infratech 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 Infratech will offset losses from the drop in PNC Infratech's long position.
The idea behind BF Investment Limited and PNC Infratech Limited 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.
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.

Other Complementary Tools

Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Bonds Directory
Find actively traded corporate debentures issued by US companies
Commodity Directory
Find actively traded commodities issued by global exchanges