Correlation Between Pgim Jennison and Amg Southernsun
Can any of the company-specific risk be diversified away by investing in both Pgim Jennison and Amg Southernsun 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 Amg Southernsun 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 Amg Southernsun Equity, you can compare the effects of market volatilities on Pgim Jennison and Amg Southernsun 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 Amg Southernsun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pgim Jennison and Amg Southernsun.
Diversification Opportunities for Pgim Jennison and Amg Southernsun
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pgim and Amg is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Jennison Technology and Amg Southernsun Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Southernsun Equity 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 Amg Southernsun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Southernsun Equity has no effect on the direction of Pgim Jennison i.e., Pgim Jennison and Amg Southernsun go up and down completely randomly.
Pair Corralation between Pgim Jennison and Amg Southernsun
Assuming the 90 days horizon Pgim Jennison Technology is expected to generate 1.08 times more return on investment than Amg Southernsun. However, Pgim Jennison is 1.08 times more volatile than Amg Southernsun Equity. It trades about 0.1 of its potential returns per unit of risk. Amg Southernsun Equity is currently generating about 0.01 per unit of risk. If you would invest 1,264 in Pgim Jennison Technology on September 4, 2024 and sell it today you would earn a total of 1,401 from holding Pgim Jennison Technology or generate 110.84% 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. Amg Southernsun Equity
Performance |
| Timeline |
| Pgim Jennison Technology |
| Amg Southernsun Equity |
Pgim Jennison and Amg Southernsun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pgim Jennison and Amg Southernsun
The main advantage of trading using opposite Pgim Jennison and Amg Southernsun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pgim Jennison position performs unexpectedly, Amg Southernsun 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 Amg Southernsun will offset losses from the drop in Amg Southernsun's long position.| Pgim Jennison vs. Rbb Fund | Pgim Jennison vs. Rbc Microcap Value | Pgim Jennison vs. T Rowe Price | Pgim Jennison vs. Volumetric Fund Volumetric |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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