Correlation Between Exchange Traded and Pfg American

Can any of the company-specific risk be diversified away by investing in both Exchange Traded and Pfg American 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 Exchange Traded and Pfg American into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Exchange Traded Concepts and Pfg American Funds, you can compare the effects of market volatilities on Exchange Traded and Pfg American 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 Exchange Traded with a short position of Pfg American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exchange Traded and Pfg American.

Diversification Opportunities for Exchange Traded and Pfg American

0.65

Correlation Coefficient

Exchange Traded  Pfg American

Poor diversification

The 3 months correlation between Exchange and Pfg is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Exchange Traded Concepts and Pfg American Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pfg American Funds and Exchange Traded 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 Exchange Traded Concepts are associated (or correlated) with Pfg American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pfg American Funds has no effect on the direction of Exchange Traded i.e., Exchange Traded and Pfg American go up and down completely randomly.

Pair Corralation between Exchange Traded and Pfg American

Given the investment horizon of 90 days Exchange Traded Concepts is expected to generate 3.77 times more return on investment than Pfg American. However, Exchange Traded is 3.77 times more volatile than Pfg American Funds. It trades about 0.07 of its potential returns per unit of risk. Pfg American Funds is currently generating about 0.09 per unit of risk. If you would invest  2,825  in Exchange Traded Concepts on September 14, 2025 and sell it today you would earn a total of  32.00  from holding Exchange Traded Concepts or generate 1.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Exchange Traded Concepts  vs.  Pfg American Funds

Exchange Traded Concepts

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Exchange Traded Concepts are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Exchange Traded is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pfg American Funds

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Pfg American Funds are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Pfg American is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Exchange Traded and Pfg American

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

The idea behind Exchange Traded Concepts and Pfg American Funds 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.