Correlation Between Ave Maria and Pgim Jennison
Can any of the company-specific risk be diversified away by investing in both Ave Maria and Pgim Jennison 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 Ave Maria and Pgim Jennison into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ave Maria Bond and Pgim Jennison Natural, you can compare the effects of market volatilities on Ave Maria and Pgim Jennison 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 Ave Maria with a short position of Pgim Jennison. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ave Maria and Pgim Jennison.
Diversification Opportunities for Ave Maria and Pgim Jennison
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ave and Pgim is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Ave Maria Bond and Pgim Jennison Natural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pgim Jennison Natural and Ave Maria 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 Ave Maria Bond are associated (or correlated) with Pgim Jennison. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pgim Jennison Natural has no effect on the direction of Ave Maria i.e., Ave Maria and Pgim Jennison go up and down completely randomly.
Pair Corralation between Ave Maria and Pgim Jennison
Assuming the 90 days horizon Ave Maria Bond is expected to generate 0.24 times more return on investment than Pgim Jennison. However, Ave Maria Bond is 4.08 times less risky than Pgim Jennison. It trades about 0.08 of its potential returns per unit of risk. Pgim Jennison Natural is currently generating about -0.07 per unit of risk. If you would invest 1,208 in Ave Maria Bond on November 5, 2024 and sell it today you would earn a total of 5.00 from holding Ave Maria Bond or generate 0.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Ave Maria Bond vs. Pgim Jennison Natural
Performance |
Timeline |
Ave Maria Bond |
Pgim Jennison Natural |
Ave Maria and Pgim Jennison Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ave Maria and Pgim Jennison
The main advantage of trading using opposite Ave Maria and Pgim Jennison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ave Maria position performs unexpectedly, Pgim Jennison 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 Pgim Jennison will offset losses from the drop in Pgim Jennison's long position.Ave Maria vs. Franklin Government Money | Ave Maria vs. Ab Government Exchange | Ave Maria vs. Gabelli Global Financial | Ave Maria vs. Prudential Financial Services |
Pgim Jennison vs. Virtus Convertible | Pgim Jennison vs. Rationalpier 88 Convertible | Pgim Jennison vs. Gabelli Convertible And | Pgim Jennison vs. Advent Claymore Convertible |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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