Correlation Between Prudential Jennison and Ubs Emerging
Can any of the company-specific risk be diversified away by investing in both Prudential Jennison and Ubs Emerging 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 Ubs Emerging 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 Ubs Emerging Markets, you can compare the effects of market volatilities on Prudential Jennison and Ubs Emerging 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 Ubs Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prudential Jennison and Ubs Emerging.
Diversification Opportunities for Prudential Jennison and Ubs Emerging
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Prudential and Ubs is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Prudential Jennison Financial and Ubs Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ubs Emerging Markets 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 Ubs Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ubs Emerging Markets has no effect on the direction of Prudential Jennison i.e., Prudential Jennison and Ubs Emerging go up and down completely randomly.
Pair Corralation between Prudential Jennison and Ubs Emerging
Assuming the 90 days horizon Prudential Jennison Financial is expected to generate 1.27 times more return on investment than Ubs Emerging. However, Prudential Jennison is 1.27 times more volatile than Ubs Emerging Markets. It trades about 0.23 of its potential returns per unit of risk. Ubs Emerging Markets is currently generating about -0.15 per unit of risk. If you would invest 2,429 in Prudential Jennison Financial on August 30, 2024 and sell it today you would earn a total of 325.00 from holding Prudential Jennison Financial or generate 13.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prudential Jennison Financial vs. Ubs Emerging Markets
Performance |
| Timeline |
| Prudential Jennison |
| Ubs Emerging Markets |
Prudential Jennison and Ubs Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prudential Jennison and Ubs Emerging
The main advantage of trading using opposite Prudential Jennison and Ubs Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prudential Jennison position performs unexpectedly, Ubs Emerging 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 Ubs Emerging will offset losses from the drop in Ubs Emerging's long position.| Prudential Jennison vs. HUMANA INC | Prudential Jennison vs. Aquagold International | Prudential Jennison vs. Barloworld Ltd ADR | Prudential Jennison vs. Morningstar Unconstrained Allocation |
| Ubs Emerging vs. Goldman Sachs Mlp | Ubs Emerging vs. Oil Gas Ultrasector | Ubs Emerging vs. Energy Services Fund | Ubs Emerging vs. Hennessy Bp Energy |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |