Correlation Between Innovativ Media and Pgim Jennison
Can any of the company-specific risk be diversified away by investing in both Innovativ Media 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 Innovativ Media and Pgim Jennison into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innovativ Media Group and Pgim Jennison Technology, you can compare the effects of market volatilities on Innovativ Media 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 Innovativ Media with a short position of Pgim Jennison. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovativ Media and Pgim Jennison.
Diversification Opportunities for Innovativ Media and Pgim Jennison
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Innovativ and Pgim is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Innovativ Media Group 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 Innovativ Media 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 Innovativ Media Group 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 Innovativ Media i.e., Innovativ Media and Pgim Jennison go up and down completely randomly.
Pair Corralation between Innovativ Media and Pgim Jennison
Given the investment horizon of 90 days Innovativ Media Group is expected to under-perform the Pgim Jennison. In addition to that, Innovativ Media is 6.63 times more volatile than Pgim Jennison Technology. It trades about -0.01 of its total potential returns per unit of risk. Pgim Jennison Technology is currently generating about 0.11 per unit of volatility. If you would invest 1,268 in Pgim Jennison Technology on August 24, 2024 and sell it today you would earn a total of 1,521 from holding Pgim Jennison Technology or generate 119.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 9.27% |
| Values | Daily Returns |
Innovativ Media Group vs. Pgim Jennison Technology
Performance |
| Timeline |
| Innovativ Media Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Pgim Jennison Technology |
Innovativ Media and Pgim Jennison Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovativ Media and Pgim Jennison
The main advantage of trading using opposite Innovativ Media and Pgim Jennison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovativ Media 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.| Innovativ Media vs. FutureWorld Corp | Innovativ Media vs. Valeo Pharma | Innovativ Media vs. Now Corp | Innovativ Media vs. Vext Science |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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