Correlation Between Prudential Jennison and Amg Managers
Can any of the company-specific risk be diversified away by investing in both Prudential Jennison and Amg Managers 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 Amg Managers 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 Amg Managers Montag, you can compare the effects of market volatilities on Prudential Jennison and Amg Managers 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 Amg Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prudential Jennison and Amg Managers.
Diversification Opportunities for Prudential Jennison and Amg Managers
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Prudential and Amg is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Prudential Jennison Financial and Amg Managers Montag in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Managers Montag 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 Amg Managers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Managers Montag has no effect on the direction of Prudential Jennison i.e., Prudential Jennison and Amg Managers go up and down completely randomly.
Pair Corralation between Prudential Jennison and Amg Managers
Assuming the 90 days horizon Prudential Jennison Financial is expected to under-perform the Amg Managers. But the mutual fund apears to be less risky and, when comparing its historical volatility, Prudential Jennison Financial is 1.14 times less risky than Amg Managers. The mutual fund trades about 0.0 of its potential returns per unit of risk. The Amg Managers Montag is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,425 in Amg Managers Montag on September 13, 2024 and sell it today you would earn a total of 37.00 from holding Amg Managers Montag or generate 2.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prudential Jennison Financial vs. Amg Managers Montag
Performance |
| Timeline |
| Prudential Jennison |
| Amg Managers Montag |
Prudential Jennison and Amg Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prudential Jennison and Amg Managers
The main advantage of trading using opposite Prudential Jennison and Amg Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prudential Jennison position performs unexpectedly, Amg Managers 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 Amg Managers will offset losses from the drop in Amg Managers' 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 |
| Amg Managers vs. Angel Oak Financial | Amg Managers vs. Prudential Jennison Financial | Amg Managers vs. Gabelli Global Financial | Amg Managers vs. Royce Global 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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