Correlation Between Pgim Jennison and Ab Global
Can any of the company-specific risk be diversified away by investing in both Pgim Jennison and Ab Global 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 Ab Global 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 Ab Global E, you can compare the effects of market volatilities on Pgim Jennison and Ab Global 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 Ab Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pgim Jennison and Ab Global.
Diversification Opportunities for Pgim Jennison and Ab Global
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pgim and GCEYX is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Jennison Technology and Ab Global E in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Global E 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 Ab Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Global E has no effect on the direction of Pgim Jennison i.e., Pgim Jennison and Ab Global go up and down completely randomly.
Pair Corralation between Pgim Jennison and Ab Global
Assuming the 90 days horizon Pgim Jennison Technology is expected to generate 1.99 times more return on investment than Ab Global. However, Pgim Jennison is 1.99 times more volatile than Ab Global E. It trades about 0.12 of its potential returns per unit of risk. Ab Global E is currently generating about -0.02 per unit of risk. If you would invest 2,559 in Pgim Jennison Technology on August 29, 2024 and sell it today you would earn a total of 90.00 from holding Pgim Jennison Technology or generate 3.52% 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. Ab Global E
Performance |
| Timeline |
| Pgim Jennison Technology |
| Ab Global E |
Pgim Jennison and Ab Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pgim Jennison and Ab Global
The main advantage of trading using opposite Pgim Jennison and Ab Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pgim Jennison position performs unexpectedly, Ab Global 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 Ab Global will offset losses from the drop in Ab Global's long position.| Pgim Jennison vs. Janus Global Technology | Pgim Jennison vs. Allianzgi Technology Fund | Pgim Jennison vs. Hennessy Technology Fund | Pgim Jennison vs. Allianzgi Technology Fund |
| Ab Global vs. Dreyfus Technology Growth | Ab Global vs. Janus Global Technology | Ab Global vs. Columbia Global Technology | Ab Global 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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