Correlation Between Pgim Jennison and Lazard International
Can any of the company-specific risk be diversified away by investing in both Pgim Jennison and Lazard International 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 Lazard International 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 Lazard International Equity, you can compare the effects of market volatilities on Pgim Jennison and Lazard International 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 Lazard International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pgim Jennison and Lazard International.
Diversification Opportunities for Pgim Jennison and Lazard International
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pgim and Lazard is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Jennison Technology and Lazard International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard International 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 Lazard International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard International has no effect on the direction of Pgim Jennison i.e., Pgim Jennison and Lazard International go up and down completely randomly.
Pair Corralation between Pgim Jennison and Lazard International
Assuming the 90 days horizon Pgim Jennison Technology is expected to generate 2.08 times more return on investment than Lazard International. However, Pgim Jennison is 2.08 times more volatile than Lazard International Equity. It trades about 0.11 of its potential returns per unit of risk. Lazard International Equity is currently generating about 0.07 per unit of risk. If you would invest 1,220 in Pgim Jennison Technology on September 5, 2024 and sell it today you would earn a total of 1,464 from holding Pgim Jennison Technology or generate 120.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pgim Jennison Technology vs. Lazard International Equity
Performance |
| Timeline |
| Pgim Jennison Technology |
| Lazard International |
Pgim Jennison and Lazard International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pgim Jennison and Lazard International
The main advantage of trading using opposite Pgim Jennison and Lazard International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pgim Jennison position performs unexpectedly, Lazard International 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 Lazard International will offset losses from the drop in Lazard International's long position.| Pgim Jennison vs. James Balanced Golden | Pgim Jennison vs. Gamco Global Gold | Pgim Jennison vs. Europac Gold Fund | Pgim Jennison vs. Short Precious Metals |
| Lazard International vs. Lazard Global Dynamic | Lazard International vs. Lazard Global Dynamic | Lazard International vs. Lazard International Quality | Lazard International vs. Lazard Small Mid 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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