Correlation Between Prudential Jennison and Aberdeen Global
Can any of the company-specific risk be diversified away by investing in both Prudential Jennison and Aberdeen Global 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 Aberdeen Global 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 Aberdeen Global Unconstrained, you can compare the effects of market volatilities on Prudential Jennison and Aberdeen Global 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 Aberdeen Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prudential Jennison and Aberdeen Global.
Diversification Opportunities for Prudential Jennison and Aberdeen Global
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Prudential and Aberdeen is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Prudential Jennison Financial and Aberdeen Global Unconstrained in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Global Unco 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 Aberdeen Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Global Unco has no effect on the direction of Prudential Jennison i.e., Prudential Jennison and Aberdeen Global go up and down completely randomly.
Pair Corralation between Prudential Jennison and Aberdeen Global
Assuming the 90 days horizon Prudential Jennison Financial is expected to under-perform the Aberdeen Global. In addition to that, Prudential Jennison is 3.38 times more volatile than Aberdeen Global Unconstrained. It trades about 0.0 of its total potential returns per unit of risk. Aberdeen Global Unconstrained is currently generating about 0.17 per unit of volatility. If you would invest 855.00 in Aberdeen Global Unconstrained on September 13, 2024 and sell it today you would earn a total of 7.00 from holding Aberdeen Global Unconstrained or generate 0.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Prudential Jennison Financial vs. Aberdeen Global Unconstrained
Performance |
| Timeline |
| Prudential Jennison |
| Aberdeen Global Unco |
Prudential Jennison and Aberdeen Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prudential Jennison and Aberdeen Global
The main advantage of trading using opposite Prudential Jennison and Aberdeen Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prudential Jennison position performs unexpectedly, Aberdeen Global 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 Aberdeen Global will offset losses from the drop in Aberdeen Global's long position.| Prudential Jennison vs. Gabelli Convertible And | Prudential Jennison vs. Absolute Convertible Arbitrage | Prudential Jennison vs. Advent Claymore Convertible | Prudential Jennison vs. Virtus Convertible |
| Aberdeen Global vs. The National Tax Free | Aberdeen Global vs. Blrc Sgy Mnp | Aberdeen Global vs. Touchstone Premium Yield | Aberdeen Global vs. Ab Global Bond |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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