Correlation Between PNC Financial and ATT
Specify exactly 2 symbols:
By analyzing existing cross correlation between PNC Financial Services and ATT Inc, you can compare the effects of market volatilities on PNC Financial and ATT 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 ATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of PNC Financial and ATT.
Diversification Opportunities for PNC Financial and ATT
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PNC and ATT is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding PNC Financial Services and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc 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 ATT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATT Inc has no effect on the direction of PNC Financial i.e., PNC Financial and ATT go up and down completely randomly.
Pair Corralation between PNC Financial and ATT
Assuming the 90 days trading horizon PNC Financial Services is expected to generate 1.2 times more return on investment than ATT. However, PNC Financial is 1.2 times more volatile than ATT Inc. It trades about 0.07 of its potential returns per unit of risk. ATT Inc is currently generating about -0.07 per unit of risk. If you would invest 18,443 in PNC Financial Services on October 25, 2024 and sell it today you would earn a total of 357.00 from holding PNC Financial Services or generate 1.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PNC Financial Services vs. ATT Inc
Performance |
| Timeline |
| PNC Financial Services |
| ATT Inc |
PNC Financial and ATT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PNC Financial and ATT
The main advantage of trading using opposite PNC Financial and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PNC Financial position performs unexpectedly, ATT 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 ATT will offset losses from the drop in ATT's long position.| PNC Financial vs. Penn National Gaming | PNC Financial vs. Media and Games | PNC Financial vs. CAREER EDUCATION | PNC Financial vs. Perdoceo Education |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |