Correlation Between Elcom International and Pgim Jennison
Can any of the company-specific risk be diversified away by investing in both Elcom International 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 Elcom International and Pgim Jennison into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elcom International and Pgim Jennison Technology, you can compare the effects of market volatilities on Elcom International 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 Elcom International with a short position of Pgim Jennison. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elcom International and Pgim Jennison.
Diversification Opportunities for Elcom International and Pgim Jennison
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Elcom and Pgim is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Elcom 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 Elcom International 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 Elcom 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 Elcom International i.e., Elcom International and Pgim Jennison go up and down completely randomly.
Pair Corralation between Elcom International and Pgim Jennison
If you would invest 1,703 in Pgim Jennison Technology on August 31, 2024 and sell it today you would earn a total of 1,125 from holding Pgim Jennison Technology or generate 66.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.27% |
| Values | Daily Returns |
Elcom International vs. Pgim Jennison Technology
Performance |
| Timeline |
| Elcom International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Pgim Jennison Technology |
Elcom International and Pgim Jennison Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elcom International and Pgim Jennison
The main advantage of trading using opposite Elcom International and Pgim Jennison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elcom International 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.| Elcom International vs. NuGene International | Elcom International vs. Zoom Video Communications | Elcom International vs. Bowmo Inc | Elcom International vs. Epazz Inc |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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