Correlation Between Pnc Emerging and Commodities Strategy

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

Diversification Opportunities for Pnc Emerging and Commodities Strategy

PncCommoditiesDiversified AwayPncCommoditiesDiversified Away100%
0.24
  Correlation Coefficient

Modest diversification

The 3 months correlation between Pnc and Commodities is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Pnc Emerging Markets and Commodities Strategy Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commodities Strategy and Pnc Emerging 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 Emerging Markets are associated (or correlated) with Commodities Strategy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commodities Strategy has no effect on the direction of Pnc Emerging i.e., Pnc Emerging and Commodities Strategy go up and down completely randomly.

Pair Corralation between Pnc Emerging and Commodities Strategy

Assuming the 90 days horizon Pnc Emerging Markets is expected to under-perform the Commodities Strategy. But the mutual fund apears to be less risky and, when comparing its historical volatility, Pnc Emerging Markets is 1.17 times less risky than Commodities Strategy. The mutual fund trades about -0.18 of its potential returns per unit of risk. The Commodities Strategy Fund is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  1,714  in Commodities Strategy Fund on October 5, 2024 and sell it today you would lose (32.00) from holding Commodities Strategy Fund or give up 1.87% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Pnc Emerging Markets  vs.  Commodities Strategy Fund

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -6-4-20246
JavaScript chart by amCharts 3.21.15PIEFX RYMJX
       Timeline  
Pnc Emerging Markets 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Pnc Emerging Markets has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.
JavaScript chart by amCharts 3.21.15NovDecDecJan15.215.415.615.81616.216.416.616.8
Commodities Strategy 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Commodities Strategy Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward-looking indicators, Commodities Strategy is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan1616.216.416.616.817

Pnc Emerging and Commodities Strategy Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-1.54-1.17-0.8-0.43-0.07650.150.520.891.261.63 0.10.20.30.40.5
JavaScript chart by amCharts 3.21.15PIEFX RYMJX
       Returns  

Pair Trading with Pnc Emerging and Commodities Strategy

The main advantage of trading using opposite Pnc Emerging and Commodities Strategy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pnc Emerging position performs unexpectedly, Commodities Strategy 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 Commodities Strategy will offset losses from the drop in Commodities Strategy's long position.
The idea behind Pnc Emerging Markets and Commodities Strategy Fund 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 the Money Managers module to screen money managers from public funds and ETFs managed around the world.

Other Complementary Tools

Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Share Portfolio
Track or share privately all of your investments from the convenience of any device