Correlation Between Pgim Jennison and Brandes Small
Can any of the company-specific risk be diversified away by investing in both Pgim Jennison and Brandes Small 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 Pgim Jennison and Brandes Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pgim Jennison Technology and Brandes Small Cap, you can compare the effects of market volatilities on Pgim Jennison and Brandes Small 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 Pgim Jennison with a short position of Brandes Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pgim Jennison and Brandes Small.
Diversification Opportunities for Pgim Jennison and Brandes Small
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pgim and Brandes is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Jennison Technology and Brandes Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brandes Small Cap and Pgim 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 Pgim Jennison Technology are associated (or correlated) with Brandes Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brandes Small Cap has no effect on the direction of Pgim Jennison i.e., Pgim Jennison and Brandes Small go up and down completely randomly.
Pair Corralation between Pgim Jennison and Brandes Small
Assuming the 90 days horizon Pgim Jennison Technology is expected to generate 1.84 times more return on investment than Brandes Small. However, Pgim Jennison is 1.84 times more volatile than Brandes Small Cap. It trades about 0.1 of its potential returns per unit of risk. Brandes Small Cap is currently generating about 0.05 per unit of risk. If you would invest 2,637 in Pgim Jennison Technology on September 12, 2024 and sell it today you would earn a total of 69.00 from holding Pgim Jennison Technology or generate 2.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pgim Jennison Technology vs. Brandes Small Cap
Performance |
| Timeline |
| Pgim Jennison Technology |
| Brandes Small Cap |
Pgim Jennison and Brandes Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pgim Jennison and Brandes Small
The main advantage of trading using opposite Pgim Jennison and Brandes Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pgim Jennison position performs unexpectedly, Brandes Small 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 Brandes Small will offset losses from the drop in Brandes Small's long position.| Pgim Jennison vs. California High Yield Municipal | Pgim Jennison vs. Gamco Global Telecommunications | Pgim Jennison vs. Pace Municipal Fixed | Pgim Jennison vs. Dws Government Money |
| Brandes Small vs. Mfs Technology Fund | Brandes Small vs. Allianzgi Technology Fund | Brandes Small vs. Global Technology Portfolio | Brandes Small vs. Pgim Jennison Technology |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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