Correlation Between Noah Holdings and PNC Bank

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Noah Holdings and PNC Bank 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 Noah Holdings and PNC Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Noah Holdings and PNC Bank, you can compare the effects of market volatilities on Noah Holdings and PNC Bank 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 Noah Holdings with a short position of PNC Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Noah Holdings and PNC Bank.

Diversification Opportunities for Noah Holdings and PNC Bank

0.82
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Noah Holdings and PNC Bank is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Noah Holdings Ltd and PNC Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PNC Bank and Noah Holdings 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 Noah Holdings are associated (or correlated) with PNC Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PNC Bank has no effect on the direction of Noah Holdings i.e., Noah Holdings and PNC Bank go up and down completely randomly.

Pair Corralation between Noah Holdings and PNC Bank

Given the investment horizon of 90 days Noah Holdings is expected to generate 2.4 times more return on investment than PNC Bank. However, Noah Holdings is 2.4 times more volatile than PNC Bank. It trades about -0.02 of its potential returns per unit of risk. PNC Bank is currently generating about -0.11 per unit of risk. If you would invest  2,353  in Noah Holdings on March 31, 2022 and sell it today you would lose (235.00)  from holding Noah Holdings or give up 9.99% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Noah Holdings Ltd  vs.  PNC Bank

 Performance (%) 
      Timeline 
Noah Holdings 
Noah Holdings Performance
0 of 100
Over the last 90 days Noah Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Noah Holdings is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Structure and Payout Changes

Dividend Date
2013-04-09
Ex Dividend Date
2013-03-18

Noah Holdings Price Channel

PNC Bank 
PNC Bank Performance
0 of 100
Over the last 90 days PNC Bank has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in July 2022. The current disturbance may also be a sign of long term up-swing for the company investors.

Structure and Payout Changes

Forward Annual Dividend Yield
0.0383
Payout Ratio
0.43
Last Split Factor
2:1
Forward Annual Dividend Rate
6.0
Dividend Date
2022-05-05
Ex Dividend Date
2022-04-12
Last Split Date
1992-11-16

PNC Bank Price Channel

Noah Holdings and PNC Bank Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Noah Holdings and PNC Bank

The main advantage of trading using opposite Noah Holdings and PNC Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Noah Holdings position performs unexpectedly, PNC Bank 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 PNC Bank will offset losses from the drop in PNC Bank's long position.
The idea behind Noah Holdings and PNC Bank 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.
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.

Other Complementary Tools

Money Managers
Screen money managers from public funds and ETFs managed around the world
Go
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Go
Bond Directory
Find actively traded corporate debentures issued by US companies
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Go
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Go