Correlation Between Pgim Jennison and International Stock
Can any of the company-specific risk be diversified away by investing in both Pgim Jennison and International Stock 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 International Stock 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 International Stock Fund, you can compare the effects of market volatilities on Pgim Jennison and International Stock 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 International Stock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pgim Jennison and International Stock.
Diversification Opportunities for Pgim Jennison and International Stock
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Pgim and International is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Jennison Technology and International Stock Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Stock 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 International Stock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Stock has no effect on the direction of Pgim Jennison i.e., Pgim Jennison and International Stock go up and down completely randomly.
Pair Corralation between Pgim Jennison and International Stock
Assuming the 90 days horizon Pgim Jennison is expected to generate 2.21 times less return on investment than International Stock. In addition to that, Pgim Jennison is 2.29 times more volatile than International Stock Fund. It trades about 0.04 of its total potential returns per unit of risk. International Stock Fund is currently generating about 0.21 per unit of volatility. If you would invest 2,217 in International Stock Fund on November 9, 2024 and sell it today you would earn a total of 87.00 from holding International Stock Fund or generate 3.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pgim Jennison Technology vs. International Stock Fund
Performance |
| Timeline |
| Pgim Jennison Technology |
| International Stock |
Pgim Jennison and International Stock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pgim Jennison and International Stock
The main advantage of trading using opposite Pgim Jennison and International Stock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pgim Jennison position performs unexpectedly, International Stock 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 International Stock will offset losses from the drop in International Stock's long position.| Pgim Jennison vs. Transam Short Term Bond | Pgim Jennison vs. Leader Short Term Bond | Pgim Jennison vs. Transamerica Short Term Bond | Pgim Jennison vs. Siit Ultra Short |
| International Stock vs. Cmg Ultra Short | International Stock vs. Alpine Ultra Short | International Stock vs. Calvert Short Duration | International Stock vs. Nuveen Short Term |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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