Correlation Between PNC Financial and Perseus Mining
Can any of the company-specific risk be diversified away by investing in both PNC Financial and Perseus Mining 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 Perseus Mining 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 Perseus Mining Limited, you can compare the effects of market volatilities on PNC Financial and Perseus Mining 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 Perseus Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of PNC Financial and Perseus Mining.
Diversification Opportunities for PNC Financial and Perseus Mining
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PNC and Perseus is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding PNC Financial Services and Perseus Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perseus Mining 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 Perseus Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perseus Mining has no effect on the direction of PNC Financial i.e., PNC Financial and Perseus Mining go up and down completely randomly.
Pair Corralation between PNC Financial and Perseus Mining
Assuming the 90 days trading horizon PNC Financial Services is expected to generate 0.87 times more return on investment than Perseus Mining. However, PNC Financial Services is 1.15 times less risky than Perseus Mining. It trades about 0.18 of its potential returns per unit of risk. Perseus Mining Limited is currently generating about 0.15 per unit of risk. If you would invest 18,443 in PNC Financial Services on November 2, 2024 and sell it today you would earn a total of 957.00 from holding PNC Financial Services or generate 5.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PNC Financial Services vs. Perseus Mining Limited
Performance |
| Timeline |
| PNC Financial Services |
| Perseus Mining |
PNC Financial and Perseus Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PNC Financial and Perseus Mining
The main advantage of trading using opposite PNC Financial and Perseus Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PNC Financial position performs unexpectedly, Perseus Mining 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 Perseus Mining will offset losses from the drop in Perseus Mining's long position.| PNC Financial vs. MTY Food Group | PNC Financial vs. GWILLI FOOD | PNC Financial vs. Soken Chemical Engineering | PNC Financial vs. CHEMICAL INDUSTRIES |
| Perseus Mining vs. EPSILON HEALTHCARE LTD | Perseus Mining vs. Universal Health Realty | Perseus Mining vs. OPKO HEALTH | Perseus Mining vs. BOSTON BEER A |
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 CEOs Directory module to screen CEOs from public companies around the world.
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