Correlation Between Prudential Jennison and Mainstay Cushing
Can any of the company-specific risk be diversified away by investing in both Prudential Jennison and Mainstay Cushing 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 Prudential Jennison and Mainstay Cushing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prudential Jennison Financial and Mainstay Cushing Mlp, you can compare the effects of market volatilities on Prudential Jennison and Mainstay Cushing 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 Prudential Jennison with a short position of Mainstay Cushing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prudential Jennison and Mainstay Cushing.
Diversification Opportunities for Prudential Jennison and Mainstay Cushing
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Prudential and Mainstay is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Prudential Jennison Financial and Mainstay Cushing Mlp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Cushing Mlp and Prudential Jennison 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 Prudential Jennison Financial are associated (or correlated) with Mainstay Cushing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Cushing Mlp has no effect on the direction of Prudential Jennison i.e., Prudential Jennison and Mainstay Cushing go up and down completely randomly.
Pair Corralation between Prudential Jennison and Mainstay Cushing
Assuming the 90 days horizon Prudential Jennison Financial is expected to under-perform the Mainstay Cushing. But the mutual fund apears to be less risky and, when comparing its historical volatility, Prudential Jennison Financial is 1.64 times less risky than Mainstay Cushing. The mutual fund trades about 0.0 of its potential returns per unit of risk. The Mainstay Cushing Mlp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,237 in Mainstay Cushing Mlp on September 14, 2024 and sell it today you would earn a total of 17.00 from holding Mainstay Cushing Mlp or generate 1.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prudential Jennison Financial vs. Mainstay Cushing Mlp
Performance |
| Timeline |
| Prudential Jennison |
| Mainstay Cushing Mlp |
Prudential Jennison and Mainstay Cushing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prudential Jennison and Mainstay Cushing
The main advantage of trading using opposite Prudential Jennison and Mainstay Cushing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prudential Jennison position performs unexpectedly, Mainstay Cushing 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 Mainstay Cushing will offset losses from the drop in Mainstay Cushing's long position.| Prudential Jennison vs. Angel Oak Ultrashort | Prudential Jennison vs. Rbc Short Duration | Prudential Jennison vs. Lord Abbett Short | Prudential Jennison vs. Virtus Multi Sector Short |
| Mainstay Cushing vs. Prudential Jennison Financial | Mainstay Cushing vs. Davis Financial Fund | Mainstay Cushing vs. Fidelity Advisor Financial | Mainstay Cushing vs. Goldman Sachs Financial |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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