Correlation Between Pgim Jennison and Global Core
Can any of the company-specific risk be diversified away by investing in both Pgim Jennison and Global Core 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 Global Core 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 Global E Portfolio, you can compare the effects of market volatilities on Pgim Jennison and Global Core 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 Global Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pgim Jennison and Global Core.
Diversification Opportunities for Pgim Jennison and Global Core
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Pgim and Global is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Jennison Technology and Global E Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global E Portfolio 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 Global Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global E Portfolio has no effect on the direction of Pgim Jennison i.e., Pgim Jennison and Global Core go up and down completely randomly.
Pair Corralation between Pgim Jennison and Global Core
Assuming the 90 days horizon Pgim Jennison Technology is expected to generate 1.65 times more return on investment than Global Core. However, Pgim Jennison is 1.65 times more volatile than Global E Portfolio. It trades about 0.12 of its potential returns per unit of risk. Global E Portfolio is currently generating about 0.13 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 | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Pgim Jennison Technology vs. Global E Portfolio
Performance |
| Timeline |
| Pgim Jennison Technology |
| Global E Portfolio |
Pgim Jennison and Global Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pgim Jennison and Global Core
The main advantage of trading using opposite Pgim Jennison and Global Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pgim Jennison position performs unexpectedly, Global Core 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 Global Core will offset losses from the drop in Global Core'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 |
| Global Core vs. Janus Global Technology | Global Core vs. Pgim Jennison Technology | Global Core vs. Blackrock Science Technology | Global Core vs. Dreyfus Technology Growth |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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