Correlation Between Munivest Fund and PGIM Short
Can any of the company-specific risk be diversified away by investing in both Munivest Fund and PGIM Short 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 Munivest Fund and PGIM Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Munivest Fund and PGIM Short Duration, you can compare the effects of market volatilities on Munivest Fund and PGIM Short 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 Munivest Fund with a short position of PGIM Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Munivest Fund and PGIM Short.
Diversification Opportunities for Munivest Fund and PGIM Short
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Munivest and PGIM is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Munivest Fund and PGIM Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PGIM Short Duration and Munivest Fund 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 Munivest Fund are associated (or correlated) with PGIM Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PGIM Short Duration has no effect on the direction of Munivest Fund i.e., Munivest Fund and PGIM Short go up and down completely randomly.
Pair Corralation between Munivest Fund and PGIM Short
Considering the 90-day investment horizon Munivest Fund is expected to generate 9.89 times less return on investment than PGIM Short. In addition to that, Munivest Fund is 3.03 times more volatile than PGIM Short Duration. It trades about 0.01 of its total potential returns per unit of risk. PGIM Short Duration is currently generating about 0.42 per unit of volatility. If you would invest 1,638 in PGIM Short Duration on November 27, 2024 and sell it today you would earn a total of 29.00 from holding PGIM Short Duration or generate 1.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Munivest Fund vs. PGIM Short Duration
Performance |
| Timeline |
| Munivest Fund |
| PGIM Short Duration |
Munivest Fund and PGIM Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Munivest Fund and PGIM Short
The main advantage of trading using opposite Munivest Fund and PGIM Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Munivest Fund position performs unexpectedly, PGIM Short 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 Short will offset losses from the drop in PGIM Short's long position.| Munivest Fund vs. Blackrock Muniyield Quality | Munivest Fund vs. Blackrock Muniyield Quality | Munivest Fund vs. Blackrock Muniholdings Closed | Munivest Fund vs. Blackrock Muniholdings Quality |
| PGIM Short vs. John Hancock Income | PGIM Short vs. MFS High Income | PGIM Short vs. MFS Investment Grade | PGIM Short vs. Blackrock Muniholdings Closed |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Stocks Directory Find actively traded stocks across global markets |