Correlation Between Pgim Global and Highland Floating
Can any of the company-specific risk be diversified away by investing in both Pgim Global and Highland Floating 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 Highland Floating 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 Highland Floating Rate, you can compare the effects of market volatilities on Pgim Global and Highland Floating 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 Highland Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pgim Global and Highland Floating.
Diversification Opportunities for Pgim Global and Highland Floating
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pgim and Highland is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Global High and Highland Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highland Floating Rate 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 Highland Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highland Floating Rate has no effect on the direction of Pgim Global i.e., Pgim Global and Highland Floating go up and down completely randomly.
Pair Corralation between Pgim Global and Highland Floating
Considering the 90-day investment horizon Pgim Global High is expected to generate 0.87 times more return on investment than Highland Floating. However, Pgim Global High is 1.15 times less risky than Highland Floating. It trades about 0.1 of its potential returns per unit of risk. Highland Floating Rate is currently generating about -0.28 per unit of risk. If you would invest 1,266 in Pgim Global High on August 26, 2024 and sell it today you would earn a total of 24.00 from holding Pgim Global High or generate 1.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pgim Global High vs. Highland Floating Rate
Performance |
| Timeline |
| Pgim Global High |
| Highland Floating Rate |
Pgim Global and Highland Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pgim Global and Highland Floating
The main advantage of trading using opposite Pgim Global and Highland Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pgim Global position performs unexpectedly, Highland Floating 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 Highland Floating will offset losses from the drop in Highland Floating's long position.| Pgim Global vs. Calamos LongShort Equity | Pgim Global vs. Virtus Global Multi | Pgim Global vs. Western Asset Diversified | Pgim Global vs. Munivest Fund |
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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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