Correlation Between PNC Financial and CullenFrost Bankers
Can any of the company-specific risk be diversified away by investing in both PNC Financial and CullenFrost Bankers 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 CullenFrost Bankers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The PNC Financial and CullenFrost Bankers, you can compare the effects of market volatilities on PNC Financial and CullenFrost Bankers 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 CullenFrost Bankers. Check out your portfolio center. Please also check ongoing floating volatility patterns of PNC Financial and CullenFrost Bankers.
Diversification Opportunities for PNC Financial and CullenFrost Bankers
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PNC and CullenFrost is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding The PNC Financial and CullenFrost Bankers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CullenFrost Bankers 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 The PNC Financial are associated (or correlated) with CullenFrost Bankers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CullenFrost Bankers has no effect on the direction of PNC Financial i.e., PNC Financial and CullenFrost Bankers go up and down completely randomly.
Pair Corralation between PNC Financial and CullenFrost Bankers
Assuming the 90 days horizon PNC Financial is expected to generate 1.07 times less return on investment than CullenFrost Bankers. In addition to that, PNC Financial is 1.14 times more volatile than CullenFrost Bankers. It trades about 0.12 of its total potential returns per unit of risk. CullenFrost Bankers is currently generating about 0.14 per unit of volatility. If you would invest 13,000 in CullenFrost Bankers on November 5, 2024 and sell it today you would earn a total of 500.00 from holding CullenFrost Bankers or generate 3.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The PNC Financial vs. CullenFrost Bankers
Performance |
| Timeline |
| PNC Financial |
| CullenFrost Bankers |
PNC Financial and CullenFrost Bankers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PNC Financial and CullenFrost Bankers
The main advantage of trading using opposite PNC Financial and CullenFrost Bankers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PNC Financial position performs unexpectedly, CullenFrost Bankers 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 CullenFrost Bankers will offset losses from the drop in CullenFrost Bankers' long position.| PNC Financial vs. TRADELINK ELECTRON | PNC Financial vs. Summit Hotel Properties | PNC Financial vs. The Trade Desk | PNC Financial vs. Indutrade AB |
| CullenFrost Bankers vs. SIERRA METALS | CullenFrost Bankers vs. Fortescue Metals Group | CullenFrost Bankers vs. DAIDO METAL TD | CullenFrost Bankers vs. Playa Hotels Resorts |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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