Correlation Between PNC Financial and Socit Gnrale

Can any of the company-specific risk be diversified away by investing in both PNC Financial and Socit Gnrale 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 Socit Gnrale 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 Socit Gnrale Socit, you can compare the effects of market volatilities on PNC Financial and Socit Gnrale 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 Socit Gnrale. Check out your portfolio center. Please also check ongoing floating volatility patterns of PNC Financial and Socit Gnrale.

Diversification Opportunities for PNC Financial and Socit Gnrale

0.0

Correlation Coefficient

PNC Financial  Socit Gnrale

Pay attention - limited upside

The 3 months correlation between PNC and Socit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PNC Financial Services and Socit Gnrale Socit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Socit Gnrale Socit 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 Socit Gnrale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Socit Gnrale Socit has no effect on the direction of PNC Financial i.e., PNC Financial and Socit Gnrale go up and down completely randomly.

Pair Corralation between PNC Financial and Socit Gnrale

If you would invest  17,612  in PNC Financial Services on September 12, 2024 and sell it today you would earn a total of  2,832  from holding PNC Financial Services or generate 16.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

PNC Financial Services  vs.  Socit Gnrale Socit

PNC Financial Services

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in PNC Financial Services are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, PNC Financial exhibited solid returns over the last few months and may actually be approaching a breakup point.

Socit Gnrale Socit

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days Socit Gnrale Socit has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable essential indicators, Socit Gnrale is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with PNC Financial and Socit Gnrale

The main advantage of trading using opposite PNC Financial and Socit Gnrale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PNC Financial position performs unexpectedly, Socit Gnrale 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 Socit Gnrale will offset losses from the drop in Socit Gnrale's long position.

The idea behind PNC Financial Services and Socit Gnrale Socit pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.