Correlation Between Pgim Jennison and American Beacon
Can any of the company-specific risk be diversified away by investing in both Pgim Jennison and American Beacon 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 American Beacon 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 American Beacon Bridgeway, you can compare the effects of market volatilities on Pgim Jennison and American Beacon 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 American Beacon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pgim Jennison and American Beacon.
Diversification Opportunities for Pgim Jennison and American Beacon
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pgim and American is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Jennison Technology and American Beacon Bridgeway in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Beacon Bridgeway 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 American Beacon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Beacon Bridgeway has no effect on the direction of Pgim Jennison i.e., Pgim Jennison and American Beacon go up and down completely randomly.
Pair Corralation between Pgim Jennison and American Beacon
Assuming the 90 days horizon Pgim Jennison Technology is expected to generate 1.51 times more return on investment than American Beacon. However, Pgim Jennison is 1.51 times more volatile than American Beacon Bridgeway. It trades about 0.05 of its potential returns per unit of risk. American Beacon Bridgeway is currently generating about 0.01 per unit of risk. If you would invest 2,160 in Pgim Jennison Technology on November 3, 2024 and sell it today you would earn a total of 420.00 from holding Pgim Jennison Technology or generate 19.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Pgim Jennison Technology vs. American Beacon Bridgeway
Performance |
| Timeline |
| Pgim Jennison Technology |
| American Beacon Bridgeway |
Pgim Jennison and American Beacon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pgim Jennison and American Beacon
The main advantage of trading using opposite Pgim Jennison and American Beacon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pgim Jennison position performs unexpectedly, American Beacon 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 American Beacon will offset losses from the drop in American Beacon's long position.| Pgim Jennison vs. Ambrus Core Bond | Pgim Jennison vs. Angel Oak Financial | Pgim Jennison vs. Dreyfusstandish Global Fixed | Pgim Jennison vs. T Rowe Price |
| American Beacon vs. Aqr Diversified Arbitrage | American Beacon vs. Delaware Limited Term Diversified | American Beacon vs. Stone Ridge Diversified | American Beacon vs. Allianzgi Diversified Income |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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