Correlation Between Franklin Adjustable and Pgim Jennison
Can any of the company-specific risk be diversified away by investing in both Franklin Adjustable 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 Franklin Adjustable and Pgim Jennison into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Adjustable Government and Pgim Jennison Technology, you can compare the effects of market volatilities on Franklin Adjustable 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 Franklin Adjustable with a short position of Pgim Jennison. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Adjustable and Pgim Jennison.
Diversification Opportunities for Franklin Adjustable and Pgim Jennison
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and Pgim is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Adjustable Government 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 Franklin Adjustable 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 Franklin Adjustable Government 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 Franklin Adjustable i.e., Franklin Adjustable and Pgim Jennison go up and down completely randomly.
Pair Corralation between Franklin Adjustable and Pgim Jennison
Assuming the 90 days horizon Franklin Adjustable Government is expected to generate 0.08 times more return on investment than Pgim Jennison. However, Franklin Adjustable Government is 12.69 times less risky than Pgim Jennison. It trades about 0.31 of its potential returns per unit of risk. Pgim Jennison Technology is currently generating about -0.14 per unit of risk. If you would invest 751.00 in Franklin Adjustable Government on November 29, 2024 and sell it today you would earn a total of 5.00 from holding Franklin Adjustable Government or generate 0.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Adjustable Government vs. Pgim Jennison Technology
Performance |
| Timeline |
| Franklin Adjustable |
| Pgim Jennison Technology |
Franklin Adjustable and Pgim Jennison Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Adjustable and Pgim Jennison
The main advantage of trading using opposite Franklin Adjustable and Pgim Jennison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Adjustable 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.| Franklin Adjustable vs. Shelton Emerging Markets | Franklin Adjustable vs. Investec Emerging Markets | Franklin Adjustable vs. Pnc Emerging Markets | Franklin Adjustable vs. Goldman Sachs Emerging |
| Pgim Jennison vs. Veea Inc | Pgim Jennison vs. Vislink Technologies | Pgim Jennison vs. Datavault AI | Pgim Jennison vs. VivoPower International PLC |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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