Correlation Between Jacob Internet and Prudential Jennison
Can any of the company-specific risk be diversified away by investing in both Jacob Internet 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 Jacob Internet and Prudential Jennison into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jacob Internet Fund and Prudential Jennison International, you can compare the effects of market volatilities on Jacob Internet 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 Jacob Internet with a short position of Prudential Jennison. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacob Internet and Prudential Jennison.
Diversification Opportunities for Jacob Internet and Prudential Jennison
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jacob and Prudential is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Jacob Internet Fund and Prudential Jennison Internatio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prudential Jennison and Jacob Internet 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 Jacob Internet Fund 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 Jacob Internet i.e., Jacob Internet and Prudential Jennison go up and down completely randomly.
Pair Corralation between Jacob Internet and Prudential Jennison
Assuming the 90 days horizon Jacob Internet Fund is expected to generate 1.63 times more return on investment than Prudential Jennison. However, Jacob Internet is 1.63 times more volatile than Prudential Jennison International. It trades about 0.12 of its potential returns per unit of risk. Prudential Jennison International is currently generating about 0.0 per unit of risk. If you would invest 462.00 in Jacob Internet Fund on September 1, 2024 and sell it today you would earn a total of 136.00 from holding Jacob Internet Fund or generate 29.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Jacob Internet Fund vs. Prudential Jennison Internatio
Performance |
| Timeline |
| Jacob Internet |
| Prudential Jennison |
Jacob Internet and Prudential Jennison Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacob Internet and Prudential Jennison
The main advantage of trading using opposite Jacob Internet and Prudential Jennison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacob Internet 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.| Jacob Internet vs. Kinetics Internet Fund | Jacob Internet vs. Internet Ultrasector Profund | Jacob Internet vs. Firsthand Technology Opportunities | Jacob Internet vs. Berkshire Focus |
| Prudential Jennison vs. Pgim Jennison International | Prudential Jennison vs. Prudential Short Duration | Prudential Jennison vs. Prudential Emerging Markets | Prudential Jennison vs. Prudential Floating Rate |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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