Correlation Between PNC Financial and Blackhawk Bancorp
Can any of the company-specific risk be diversified away by investing in both PNC Financial and Blackhawk Bancorp 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 Financial and Blackhawk Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PNC Financial Services and Blackhawk Bancorp, you can compare the effects of market volatilities on PNC Financial and Blackhawk Bancorp 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 Financial with a short position of Blackhawk Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of PNC Financial and Blackhawk Bancorp.
Diversification Opportunities for PNC Financial and Blackhawk Bancorp
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PNC and Blackhawk is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding PNC Financial Services and Blackhawk Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackhawk Bancorp and PNC Financial 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 Financial Services are associated (or correlated) with Blackhawk Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackhawk Bancorp has no effect on the direction of PNC Financial i.e., PNC Financial and Blackhawk Bancorp go up and down completely randomly.
Pair Corralation between PNC Financial and Blackhawk Bancorp
If you would invest 15,226 in PNC Financial Services on September 1, 2024 and sell it today you would earn a total of 6,246 from holding PNC Financial Services or generate 41.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.79% |
| Values | Daily Returns |
PNC Financial Services vs. Blackhawk Bancorp
Performance |
| Timeline |
| PNC Financial Services |
| Blackhawk Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PNC Financial and Blackhawk Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PNC Financial and Blackhawk Bancorp
The main advantage of trading using opposite PNC Financial and Blackhawk Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PNC Financial position performs unexpectedly, Blackhawk Bancorp 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 Blackhawk Bancorp will offset losses from the drop in Blackhawk Bancorp's long position.| PNC Financial vs. Truist Financial Corp | PNC Financial vs. KeyCorp | PNC Financial vs. Western Alliance Bancorporation | PNC Financial vs. Zions Bancorporation |
| Blackhawk Bancorp vs. CCSB Financial Corp | Blackhawk Bancorp vs. Bank of Utica | Blackhawk Bancorp vs. First Community Financial | Blackhawk Bancorp vs. BEO Bancorp |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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