Correlation Between Xtrackers High and PGIM Active
Can any of the company-specific risk be diversified away by investing in both Xtrackers High and PGIM Active 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 Xtrackers High and PGIM Active into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers High Beta and PGIM Active High, you can compare the effects of market volatilities on Xtrackers High and PGIM Active 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 Xtrackers High with a short position of PGIM Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers High and PGIM Active.
Diversification Opportunities for Xtrackers High and PGIM Active
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xtrackers and PGIM is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers High Beta and PGIM Active High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PGIM Active High and Xtrackers High 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 Xtrackers High Beta are associated (or correlated) with PGIM Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PGIM Active High has no effect on the direction of Xtrackers High i.e., Xtrackers High and PGIM Active go up and down completely randomly.
Pair Corralation between Xtrackers High and PGIM Active
Given the investment horizon of 90 days Xtrackers High Beta is expected to generate 1.24 times more return on investment than PGIM Active. However, Xtrackers High is 1.24 times more volatile than PGIM Active High. It trades about 0.3 of its potential returns per unit of risk. PGIM Active High is currently generating about 0.34 per unit of risk. If you would invest 4,144 in Xtrackers High Beta on October 20, 2024 and sell it today you would earn a total of 79.00 from holding Xtrackers High Beta or generate 1.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtrackers High Beta vs. PGIM Active High
Performance |
| Timeline |
| Xtrackers High Beta |
| PGIM Active High |
Xtrackers High and PGIM Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers High and PGIM Active
The main advantage of trading using opposite Xtrackers High and PGIM Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers High position performs unexpectedly, PGIM Active 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 Active will offset losses from the drop in PGIM Active's long position.| Xtrackers High vs. Xtrackers Short Duration | Xtrackers High vs. FlexShares High Yield | Xtrackers High vs. Xtrackers Low Beta | Xtrackers High vs. iShares Edge High |
| PGIM Active vs. Xtrackers High Beta | PGIM Active vs. Xtrackers Short Duration | PGIM Active vs. FlexShares High Yield | PGIM Active vs. Franklin Liberty High |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| CEOs Directory Screen CEOs from public companies around the world |