Correlation Between Columbia Acorn and Pgim Jennison
Can any of the company-specific risk be diversified away by investing in both Columbia Acorn 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 Columbia Acorn and Pgim Jennison into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Acorn International and Pgim Jennison Technology, you can compare the effects of market volatilities on Columbia Acorn 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 Columbia Acorn with a short position of Pgim Jennison. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Acorn and Pgim Jennison.
Diversification Opportunities for Columbia Acorn and Pgim Jennison
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Columbia and Pgim is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Acorn International 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 Columbia Acorn 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 Columbia Acorn International 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 Columbia Acorn i.e., Columbia Acorn and Pgim Jennison go up and down completely randomly.
Pair Corralation between Columbia Acorn and Pgim Jennison
Assuming the 90 days horizon Columbia Acorn is expected to generate 2.44 times less return on investment than Pgim Jennison. But when comparing it to its historical volatility, Columbia Acorn International is 1.83 times less risky than Pgim Jennison. It trades about 0.04 of its potential returns per unit of risk. Pgim Jennison Technology is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,284 in Pgim Jennison Technology on November 4, 2024 and sell it today you would earn a total of 441.00 from holding Pgim Jennison Technology or generate 19.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Columbia Acorn International vs. Pgim Jennison Technology
Performance |
| Timeline |
| Columbia Acorn Inter |
| Pgim Jennison Technology |
Columbia Acorn and Pgim Jennison Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Acorn and Pgim Jennison
The main advantage of trading using opposite Columbia Acorn and Pgim Jennison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Acorn 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.| Columbia Acorn vs. Rbc Global Equity | Columbia Acorn vs. Dws Global Macro | Columbia Acorn vs. Rational Strategic Allocation | Columbia Acorn vs. Growth Portfolio Class |
| Pgim Jennison vs. Aqr Global Macro | Pgim Jennison vs. Dreyfusstandish Global Fixed | Pgim Jennison vs. Qs Global Equity | Pgim Jennison vs. Kinetics Global Fund |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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