Correlation Between Pgim Jennison and First Eagle
Can any of the company-specific risk be diversified away by investing in both Pgim Jennison and First Eagle 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 First Eagle 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 First Eagle Gold, you can compare the effects of market volatilities on Pgim Jennison and First Eagle 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 First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pgim Jennison and First Eagle.
Diversification Opportunities for Pgim Jennison and First Eagle
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pgim and First is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Jennison Technology and First Eagle Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Gold 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 First Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Eagle Gold has no effect on the direction of Pgim Jennison i.e., Pgim Jennison and First Eagle go up and down completely randomly.
Pair Corralation between Pgim Jennison and First Eagle
Assuming the 90 days horizon Pgim Jennison Technology is expected to generate 1.14 times more return on investment than First Eagle. However, Pgim Jennison is 1.14 times more volatile than First Eagle Gold. It trades about 0.11 of its potential returns per unit of risk. First Eagle Gold is currently generating about 0.0 per unit of risk. If you would invest 1,195 in Pgim Jennison Technology on August 31, 2024 and sell it today you would earn a total of 1,441 from holding Pgim Jennison Technology or generate 120.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 28.24% |
| Values | Daily Returns |
Pgim Jennison Technology vs. First Eagle Gold
Performance |
| Timeline |
| Pgim Jennison Technology |
| First Eagle Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Pgim Jennison and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pgim Jennison and First Eagle
The main advantage of trading using opposite Pgim Jennison and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pgim Jennison position performs unexpectedly, First Eagle 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 First Eagle will offset losses from the drop in First Eagle'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 |
| First Eagle vs. T Rowe Price | First Eagle vs. Small Pany Growth | First Eagle vs. Legg Mason Partners | First Eagle vs. Touchstone Small Cap |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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