Correlation Between Pgim Jennison and Oshaughnessy Market
Can any of the company-specific risk be diversified away by investing in both Pgim Jennison and Oshaughnessy Market 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 Oshaughnessy Market 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 Oshaughnessy Market Leaders, you can compare the effects of market volatilities on Pgim Jennison and Oshaughnessy Market 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 Oshaughnessy Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pgim Jennison and Oshaughnessy Market.
Diversification Opportunities for Pgim Jennison and Oshaughnessy Market
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Pgim and Oshaughnessy is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Jennison Technology and Oshaughnessy Market Leaders in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oshaughnessy Market 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 Oshaughnessy Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oshaughnessy Market has no effect on the direction of Pgim Jennison i.e., Pgim Jennison and Oshaughnessy Market go up and down completely randomly.
Pair Corralation between Pgim Jennison and Oshaughnessy Market
Assuming the 90 days horizon Pgim Jennison Technology is expected to generate 1.67 times more return on investment than Oshaughnessy Market. However, Pgim Jennison is 1.67 times more volatile than Oshaughnessy Market Leaders. It trades about -0.14 of its potential returns per unit of risk. Oshaughnessy Market Leaders is currently generating about -0.25 per unit of risk. If you would invest 2,706 in Pgim Jennison Technology on October 12, 2024 and sell it today you would lose (123.00) from holding Pgim Jennison Technology or give up 4.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pgim Jennison Technology vs. Oshaughnessy Market Leaders
Performance |
| Timeline |
| Pgim Jennison Technology |
| Oshaughnessy Market |
Pgim Jennison and Oshaughnessy Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pgim Jennison and Oshaughnessy Market
The main advantage of trading using opposite Pgim Jennison and Oshaughnessy Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pgim Jennison position performs unexpectedly, Oshaughnessy Market 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 Oshaughnessy Market will offset losses from the drop in Oshaughnessy Market's long position.| Pgim Jennison vs. Stone Ridge Diversified | Pgim Jennison vs. Aqr Diversified Arbitrage | Pgim Jennison vs. Jhancock Diversified Macro | Pgim Jennison vs. Putnam Diversified Income |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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