Correlation Between Pgim Jennison and Highland Long/short
Can any of the company-specific risk be diversified away by investing in both Pgim Jennison and Highland Long/short 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 Highland Long/short 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 Highland Longshort Healthcare, you can compare the effects of market volatilities on Pgim Jennison and Highland Long/short 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 Highland Long/short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pgim Jennison and Highland Long/short.
Diversification Opportunities for Pgim Jennison and Highland Long/short
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pgim and Highland is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Jennison Technology and Highland Longshort Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highland Long/short 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 Highland Long/short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highland Long/short has no effect on the direction of Pgim Jennison i.e., Pgim Jennison and Highland Long/short go up and down completely randomly.
Pair Corralation between Pgim Jennison and Highland Long/short
Assuming the 90 days horizon Pgim Jennison Technology is expected to generate 5.61 times more return on investment than Highland Long/short. However, Pgim Jennison is 5.61 times more volatile than Highland Longshort Healthcare. It trades about 0.3 of its potential returns per unit of risk. Highland Longshort Healthcare is currently generating about -0.05 per unit of risk. If you would invest 2,531 in Pgim Jennison Technology on September 6, 2024 and sell it today you would earn a total of 219.00 from holding Pgim Jennison Technology or generate 8.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Pgim Jennison Technology vs. Highland Longshort Healthcare
Performance |
| Timeline |
| Pgim Jennison Technology |
| Highland Long/short |
Pgim Jennison and Highland Long/short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pgim Jennison and Highland Long/short
The main advantage of trading using opposite Pgim Jennison and Highland Long/short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pgim Jennison position performs unexpectedly, Highland Long/short 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 Highland Long/short will offset losses from the drop in Highland Long/short's long position.| Pgim Jennison vs. Artisan Select Equity | Pgim Jennison vs. Nationwide Global Equity | Pgim Jennison vs. Small Cap Equity | Pgim Jennison vs. Gmo Global Equity |
| Highland Long/short vs. Calamos Dynamic Convertible | Highland Long/short vs. The Fixed Income | Highland Long/short vs. Bbh Intermediate Municipal | Highland Long/short vs. Ms Global Fixed |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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