Correlation Between CBH and PGIM Short
Can any of the company-specific risk be diversified away by investing in both CBH and PGIM Short 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 CBH and PGIM Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CBH and PGIM Short Duration, you can compare the effects of market volatilities on CBH and PGIM Short 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 CBH with a short position of PGIM Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBH and PGIM Short.
Diversification Opportunities for CBH and PGIM Short
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CBH and PGIM is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding CBH and PGIM Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PGIM Short Duration and CBH 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 CBH are associated (or correlated) with PGIM Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PGIM Short Duration has no effect on the direction of CBH i.e., CBH and PGIM Short go up and down completely randomly.
Pair Corralation between CBH and PGIM Short
If you would invest 1,652 in PGIM Short Duration on August 31, 2024 and sell it today you would earn a total of 1.00 from holding PGIM Short Duration or generate 0.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.35% |
| Values | Daily Returns |
CBH vs. PGIM Short Duration
Performance |
| Timeline |
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| PGIM Short Duration |
CBH and PGIM Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBH and PGIM Short
The main advantage of trading using opposite CBH and PGIM Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBH position performs unexpectedly, PGIM Short 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 Short will offset losses from the drop in PGIM Short's long position.| CBH vs. Eaton Vance National | CBH vs. Invesco High Income | CBH vs. Blackrock Muniholdings Ny | CBH vs. Nuveen California Select |
| PGIM Short vs. John Hancock Income | PGIM Short vs. MFS High Income | PGIM Short vs. MFS Investment Grade | PGIM Short vs. Blackrock Muniholdings Closed |
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
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |