Correlation Between Blackstone Secured and Pgim Jennison
Can any of the company-specific risk be diversified away by investing in both Blackstone Secured 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 Blackstone Secured and Pgim Jennison into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Secured Lending and Pgim Jennison Technology, you can compare the effects of market volatilities on Blackstone Secured 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 Blackstone Secured with a short position of Pgim Jennison. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Secured and Pgim Jennison.
Diversification Opportunities for Blackstone Secured and Pgim Jennison
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Blackstone and PGIM is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Secured Lending and Pgim Jennison Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pgim Jennison Technology and Blackstone Secured 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 Blackstone Secured Lending 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 Technology has no effect on the direction of Blackstone Secured i.e., Blackstone Secured and Pgim Jennison go up and down completely randomly.
Pair Corralation between Blackstone Secured and Pgim Jennison
Given the investment horizon of 90 days Blackstone Secured is expected to generate 1.08 times less return on investment than Pgim Jennison. But when comparing it to its historical volatility, Blackstone Secured Lending is 1.48 times less risky than Pgim Jennison. It trades about 0.15 of its potential returns per unit of risk. Pgim Jennison Technology is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,591 in Pgim Jennison Technology on October 24, 2024 and sell it today you would earn a total of 66.00 from holding Pgim Jennison Technology or generate 2.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Secured Lending vs. Pgim Jennison Technology
Performance |
| Timeline |
| Blackstone Secured |
| Pgim Jennison Technology |
Blackstone Secured and Pgim Jennison Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Secured and Pgim Jennison
The main advantage of trading using opposite Blackstone Secured and Pgim Jennison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Secured 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.| Blackstone Secured vs. Carlyle Secured Lending | Blackstone Secured vs. Oaktree Specialty Lending | Blackstone Secured vs. Sixth Street Specialty | Blackstone Secured vs. FS KKR Capital |
| Pgim Jennison vs. Bbh Trust | Pgim Jennison vs. Siit Emerging Markets | Pgim Jennison vs. Calvert Developed Market | Pgim Jennison vs. Extended Market Index |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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