Correlation Between GX Nasdaq-100 and PNC Bank

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both GX Nasdaq-100 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 GX Nasdaq-100 and PNC Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GX Nasdaq-100 Covered and PNC Bank, you can compare the effects of market volatilities on GX Nasdaq-100 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 GX Nasdaq-100 with a short position of PNC Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of GX Nasdaq-100 and PNC Bank.

Diversification Opportunities for GX Nasdaq-100 and PNC Bank

0.83
  Correlation Coefficient

Very poor diversification

The 3 months correlation between GX Nasdaq-100 and PNC Bank is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding GX Nasdaq-100 Covered and PNC Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PNC Bank and GX Nasdaq-100 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 GX Nasdaq-100 Covered 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 GX Nasdaq-100 i.e., GX Nasdaq-100 and PNC Bank go up and down completely randomly.

Pair Corralation between GX Nasdaq-100 and PNC Bank

Given the investment horizon of 90 days GX Nasdaq-100 Covered is expected to under-perform the PNC Bank. But the etf apears to be less risky and, when comparing its historical volatility, GX Nasdaq-100 Covered is 1.41 times less risky than PNC Bank. The etf trades about -0.03 of its potential returns per unit of risk. The PNC Bank is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  18,575  in PNC Bank on March 27, 2022 and sell it today you would lose (2,291)  from holding PNC Bank or give up 12.33% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

GX Nasdaq-100 Covered  vs.  PNC Bank

 Performance (%) 
      Timeline 
GX Nasdaq-100 Covered 
GX Nasdaq-100 Performance
0 of 100
Over the last 90 days GX Nasdaq-100 Covered has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Etf's essential indicators remain rather sound which may send shares a bit higher in July 2022. The latest tumult may also be a sign of longer-term up-swing for the fund shareholders.

GX Nasdaq-100 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 unfluctuating 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

GX Nasdaq-100 and PNC Bank Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with GX Nasdaq-100 and PNC Bank

The main advantage of trading using opposite GX Nasdaq-100 and PNC Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GX Nasdaq-100 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.

GX Nasdaq-100 Covered

Pair trading matchups for GX Nasdaq-100

The idea behind GX Nasdaq-100 Covered 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

Other Complementary Tools

Stock Screener
Find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Go
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Go
Bond Directory
Find actively traded corporate debentures issued by US companies
Go
CEO Directory
Screen CEOs from public companies around the world
Go
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Go
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Go
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Go
Money Managers
Screen money managers from public funds and ETFs managed around the world
Go
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Go