Pgim Target Correlations

PDAMX Fund   11.60  0.04  0.35%   
The correlation of Pgim Target is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Pgim Target Correlation With Market

Poor diversification

The correlation between Pgim Target Date and DJI is 0.68 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Target Date and DJI in the same portfolio, assuming nothing else is changed.
  
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Pgim Target Date. Also, note that the market value of any mutual fund could be closely tied with the direction of predictive economic indicators such as signals in board of governors.

Moving together with Pgim Mutual Fund

  0.97VLXVX Vanguard Target RetiPairCorr
  0.97FFIKX Fidelity Freedom IndexPairCorr
  0.78FFIJX Fidelity Freedom IndexPairCorr
  0.76FFSFX Fidelity Freedom 2065PairCorr
  0.96FFSZX Fidelity Freedom 2065PairCorr
  0.97FAVVX Fidelity Freedom IndexPairCorr
  0.97FBMTX American Funds 2065PairCorr
  0.97RCPTX American Funds 2065PairCorr
  0.78FAXTX American Funds 2065PairCorr
  0.97RBEOX American Funds 2065PairCorr
  0.83FSMMX Fs Multi StrategyPairCorr
  0.94BTMPX Ishares Msci EafePairCorr
  0.94BTMKX Blackrock InternationalPairCorr
  0.94MDIIX Blackrock Intern IndexPairCorr
  0.62MLPMX Oppenheimer Steelpath MlpPairCorr
  0.62CVX Chevron Corp Earnings Call This WeekPairCorr
  0.65DIS Walt DisneyPairCorr

Moving against Pgim Mutual Fund

  0.45VZ Verizon Communications Earnings Call This WeekPairCorr
  0.43T ATT Inc Earnings Call TomorrowPairCorr
  0.41TRV The Travelers CompaniesPairCorr

Related Correlations Analysis


Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

PRELXFMVUX
RPGXXFMVUX
TFGXXFMVUX
JIMXXFMVUX
FMFXXFMVUX
MYMXXFMVUX
  

High negative correlations

MYMXXFMFXX
MYMXXJIMXX
FMFXXJIMXX
MYMXXTFGXX
FMFXXTFGXX
JIMXXTFGXX

Risk-Adjusted Indicators

There is a big difference between Pgim Mutual Fund performing well and Pgim Target Mutual Fund doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Pgim Target's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.