Correlation Between Pgim Global and Abrdn Emerging
Can any of the company-specific risk be diversified away by investing in both Pgim Global and Abrdn Emerging 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 Pgim Global and Abrdn Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pgim Global High and Abrdn Emerging Markets, you can compare the effects of market volatilities on Pgim Global and Abrdn Emerging 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 Pgim Global with a short position of Abrdn Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pgim Global and Abrdn Emerging.
Diversification Opportunities for Pgim Global and Abrdn Emerging
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pgim and Abrdn is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Global High and Abrdn Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abrdn Emerging Markets and Pgim Global 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 Pgim Global High are associated (or correlated) with Abrdn Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abrdn Emerging Markets has no effect on the direction of Pgim Global i.e., Pgim Global and Abrdn Emerging go up and down completely randomly.
Pair Corralation between Pgim Global and Abrdn Emerging
Considering the 90-day investment horizon Pgim Global High is expected to generate 0.59 times more return on investment than Abrdn Emerging. However, Pgim Global High is 1.69 times less risky than Abrdn Emerging. It trades about 0.09 of its potential returns per unit of risk. Abrdn Emerging Markets is currently generating about 0.03 per unit of risk. If you would invest 914.00 in Pgim Global High on August 28, 2024 and sell it today you would earn a total of 370.00 from holding Pgim Global High or generate 40.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pgim Global High vs. Abrdn Emerging Markets
Performance |
| Timeline |
| Pgim Global High |
| Abrdn Emerging Markets |
Pgim Global and Abrdn Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pgim Global and Abrdn Emerging
The main advantage of trading using opposite Pgim Global and Abrdn Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pgim Global position performs unexpectedly, Abrdn Emerging 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 Abrdn Emerging will offset losses from the drop in Abrdn Emerging's long position.| Pgim Global vs. Pimco Dynamic Income | Pgim Global vs. Pimco Corporate Income | Pgim Global vs. Cornerstone Strategic Value | Pgim Global vs. Cornerstone Strategic Return |
| Abrdn Emerging vs. DWS Municipal Income | Abrdn Emerging vs. Blackrock Muni Intermediate | Abrdn Emerging vs. Blackrock Muniyield | Abrdn Emerging vs. Flow Capital Corp |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |