Correlation Between Pgim Jennison and Federated High
Can any of the company-specific risk be diversified away by investing in both Pgim Jennison and Federated High 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 Federated High 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 Federated High Yield, you can compare the effects of market volatilities on Pgim Jennison and Federated High 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 Federated High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pgim Jennison and Federated High.
Diversification Opportunities for Pgim Jennison and Federated High
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pgim and Federated is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Jennison Technology and Federated High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated High Yield 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 Federated High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated High Yield has no effect on the direction of Pgim Jennison i.e., Pgim Jennison and Federated High go up and down completely randomly.
Pair Corralation between Pgim Jennison and Federated High
Assuming the 90 days horizon Pgim Jennison Technology is expected to generate 7.82 times more return on investment than Federated High. However, Pgim Jennison is 7.82 times more volatile than Federated High Yield. It trades about 0.06 of its potential returns per unit of risk. Federated High Yield is currently generating about 0.24 per unit of risk. If you would invest 2,568 in Pgim Jennison Technology on August 31, 2024 and sell it today you would earn a total of 41.00 from holding Pgim Jennison Technology or generate 1.6% 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. Federated High Yield
Performance |
| Timeline |
| Pgim Jennison Technology |
| Federated High Yield |
Pgim Jennison and Federated High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pgim Jennison and Federated High
The main advantage of trading using opposite Pgim Jennison and Federated High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pgim Jennison position performs unexpectedly, Federated High 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 Federated High will offset losses from the drop in Federated High's long position.| Pgim Jennison vs. Pgim Jennison International | Pgim Jennison vs. Pgim Jennison International | Pgim Jennison vs. Pgim Jennison Natural | Pgim Jennison vs. Pgim Esg High |
| Federated High vs. Allianzgi Technology Fund | Federated High vs. Technology Ultrasector Profund | Federated High vs. Pgim Jennison Technology | Federated High 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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