Correlation Between RCS MediaGroup and PNC Financial

Can any of the company-specific risk be diversified away by investing in both RCS MediaGroup and PNC Financial 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 RCS MediaGroup and PNC Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between RCS MediaGroup SpA and The PNC Financial, you can compare the effects of market volatilities on RCS MediaGroup and PNC Financial 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 RCS MediaGroup with a short position of PNC Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of RCS MediaGroup and PNC Financial.

Diversification Opportunities for RCS MediaGroup and PNC Financial

0.0

Correlation Coefficient

RCS MediaGroup  PNC Financial

Pay attention - limited upside

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

Pair Corralation between RCS MediaGroup and PNC Financial

If you would invest  0.00  in RCS MediaGroup SpA on October 4, 2024 and sell it today you would earn a total of  0.00  from holding RCS MediaGroup SpA or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.56%
Values	Daily Returns

RCS MediaGroup SpA  vs.  The PNC Financial

RCS MediaGroup SpA

Risk-Adjusted Performance

0 of 100

Very Weak

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

PNC Financial

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in The PNC Financial are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, PNC Financial reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with RCS MediaGroup and PNC Financial

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

The idea behind RCS MediaGroup SpA and The PNC Financial 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.