Correlation Between PGIM ETF and Peoples Bancorp
Can any of the company-specific risk be diversified away by investing in both PGIM ETF and Peoples Bancorp 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 ETF and Peoples Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PGIM ETF Trust and Peoples Bancorp of, you can compare the effects of market volatilities on PGIM ETF and Peoples Bancorp 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 ETF with a short position of Peoples Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of PGIM ETF and Peoples Bancorp.
Diversification Opportunities for PGIM ETF and Peoples Bancorp
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between PGIM and Peoples is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding PGIM ETF Trust and Peoples Bancorp of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Bancorp and PGIM ETF 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 ETF Trust are associated (or correlated) with Peoples Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peoples Bancorp has no effect on the direction of PGIM ETF i.e., PGIM ETF and Peoples Bancorp go up and down completely randomly.
Pair Corralation between PGIM ETF and Peoples Bancorp
Considering the 90-day investment horizon PGIM ETF is expected to generate 4.22 times less return on investment than Peoples Bancorp. But when comparing it to its historical volatility, PGIM ETF Trust is 5.12 times less risky than Peoples Bancorp. It trades about 0.07 of its potential returns per unit of risk. Peoples Bancorp of is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,702 in Peoples Bancorp of on September 1, 2024 and sell it today you would earn a total of 442.00 from holding Peoples Bancorp of or generate 16.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.47% |
| Values | Daily Returns |
PGIM ETF Trust vs. Peoples Bancorp of
Performance |
| Timeline |
| PGIM ETF Trust |
| Peoples Bancorp |
PGIM ETF and Peoples Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PGIM ETF and Peoples Bancorp
The main advantage of trading using opposite PGIM ETF and Peoples Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PGIM ETF position performs unexpectedly, Peoples Bancorp 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 Peoples Bancorp will offset losses from the drop in Peoples Bancorp's long position.| PGIM ETF vs. Old Point Financial | PGIM ETF vs. Peoples Bancorp of | PGIM ETF vs. RiverFront Strategic Income |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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