Correlation Between Prudential Jennison and Matthews Asian
Can any of the company-specific risk be diversified away by investing in both Prudential Jennison and Matthews Asian 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 Matthews Asian 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 Matthews Asian Growth, you can compare the effects of market volatilities on Prudential Jennison and Matthews Asian 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 Matthews Asian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prudential Jennison and Matthews Asian.
Diversification Opportunities for Prudential Jennison and Matthews Asian
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Prudential and Matthews is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Prudential Jennison Financial and Matthews Asian Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matthews Asian Growth 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 Matthews Asian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matthews Asian Growth has no effect on the direction of Prudential Jennison i.e., Prudential Jennison and Matthews Asian go up and down completely randomly.
Pair Corralation between Prudential Jennison and Matthews Asian
Assuming the 90 days horizon Prudential Jennison Financial is expected to generate 2.04 times more return on investment than Matthews Asian. However, Prudential Jennison is 2.04 times more volatile than Matthews Asian Growth. It trades about 0.31 of its potential returns per unit of risk. Matthews Asian Growth is currently generating about -0.13 per unit of risk. If you would invest 2,486 in Prudential Jennison Financial on September 2, 2024 and sell it today you would earn a total of 267.00 from holding Prudential Jennison Financial or generate 10.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prudential Jennison Financial vs. Matthews Asian Growth
Performance |
| Timeline |
| Prudential Jennison |
| Matthews Asian Growth |
Prudential Jennison and Matthews Asian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prudential Jennison and Matthews Asian
The main advantage of trading using opposite Prudential Jennison and Matthews Asian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prudential Jennison position performs unexpectedly, Matthews Asian 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 Matthews Asian will offset losses from the drop in Matthews Asian's long position.| Prudential Jennison vs. Touchstone Premium Yield | Prudential Jennison vs. Versatile Bond Portfolio | Prudential Jennison vs. Blrc Sgy Mnp | Prudential Jennison vs. Artisan High Income |
| Matthews Asian vs. Allianzgi Technology Fund | Matthews Asian vs. Goldman Sachs Technology | Matthews Asian vs. Dreyfus Technology Growth | Matthews Asian vs. Mfs Technology Fund |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| CEOs Directory Screen CEOs from public companies around the world |