Correlation Between Shelton Emerging and Prudential Jennison
Can any of the company-specific risk be diversified away by investing in both Shelton Emerging and Prudential 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 Shelton Emerging and Prudential Jennison into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shelton Emerging Markets and Prudential Jennison Growth, you can compare the effects of market volatilities on Shelton Emerging and Prudential 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 Shelton Emerging with a short position of Prudential Jennison. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shelton Emerging and Prudential Jennison.
Diversification Opportunities for Shelton Emerging and Prudential Jennison
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shelton and Prudential is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Shelton Emerging Markets and Prudential Jennison Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prudential Jennison and Shelton Emerging 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 Shelton Emerging Markets are associated (or correlated) with Prudential Jennison. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prudential Jennison has no effect on the direction of Shelton Emerging i.e., Shelton Emerging and Prudential Jennison go up and down completely randomly.
Pair Corralation between Shelton Emerging and Prudential Jennison
Assuming the 90 days horizon Shelton Emerging Markets is expected to under-perform the Prudential Jennison. But the mutual fund apears to be less risky and, when comparing its historical volatility, Shelton Emerging Markets is 1.2 times less risky than Prudential Jennison. The mutual fund trades about 0.0 of its potential returns per unit of risk. The Prudential Jennison Growth is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 4,699 in Prudential Jennison Growth on August 31, 2024 and sell it today you would earn a total of 1,952 from holding Prudential Jennison Growth or generate 41.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shelton Emerging Markets vs. Prudential Jennison Growth
Performance |
| Timeline |
| Shelton Emerging Markets |
| Prudential Jennison |
Shelton Emerging and Prudential Jennison Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shelton Emerging and Prudential Jennison
The main advantage of trading using opposite Shelton Emerging and Prudential Jennison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shelton Emerging position performs unexpectedly, Prudential 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 Prudential Jennison will offset losses from the drop in Prudential Jennison's long position.| Shelton Emerging vs. Pear Tree Polaris | Shelton Emerging vs. Artisan High Income | Shelton Emerging vs. HUMANA INC | Shelton Emerging vs. Aquagold International |
| Prudential Jennison vs. Europacific Growth Fund | Prudential Jennison vs. Washington Mutual Investors | Prudential Jennison vs. Capital World Growth | Prudential Jennison vs. HUMANA INC |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |