Correlation Between PNC Financial and CRAWFORD +
Can any of the company-specific risk be diversified away by investing in both PNC Financial and CRAWFORD + 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 CRAWFORD + 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 CRAWFORD A NV, you can compare the effects of market volatilities on PNC Financial and CRAWFORD + 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 CRAWFORD +. Check out your portfolio center. Please also check ongoing floating volatility patterns of PNC Financial and CRAWFORD +.
Diversification Opportunities for PNC Financial and CRAWFORD +
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between PNC and CRAWFORD is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding PNC Financial Services and CRAWFORD A NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CRAWFORD A NV 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 CRAWFORD +. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CRAWFORD A NV has no effect on the direction of PNC Financial i.e., PNC Financial and CRAWFORD + go up and down completely randomly.
Pair Corralation between PNC Financial and CRAWFORD +
Assuming the 90 days trading horizon PNC Financial Services is expected to under-perform the CRAWFORD +. But the stock apears to be less risky and, when comparing its historical volatility, PNC Financial Services is 2.27 times less risky than CRAWFORD +. The stock trades about -0.24 of its potential returns per unit of risk. The CRAWFORD A NV is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 1,060 in CRAWFORD A NV on October 10, 2024 and sell it today you would lose (20.00) from holding CRAWFORD A NV or give up 1.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
PNC Financial Services vs. CRAWFORD A NV
Performance |
| Timeline |
| PNC Financial Services |
| CRAWFORD A NV |
PNC Financial and CRAWFORD + Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PNC Financial and CRAWFORD +
The main advantage of trading using opposite PNC Financial and CRAWFORD + positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PNC Financial position performs unexpectedly, CRAWFORD + 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 CRAWFORD + will offset losses from the drop in CRAWFORD +'s long position.| PNC Financial vs. Heidelberg Materials AG | PNC Financial vs. APPLIED MATERIALS | PNC Financial vs. CONTAGIOUS GAMING INC | PNC Financial vs. Plastic Omnium |
| CRAWFORD + vs. Brown Brown | CRAWFORD + vs. Sabre Insurance Group | CRAWFORD + vs. Superior Plus Corp | CRAWFORD + vs. NMI Holdings |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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