Correlation Between Pgim Jennison and Sterling Capital
Can any of the company-specific risk be diversified away by investing in both Pgim Jennison and Sterling Capital 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 Sterling Capital 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 Sterling Capital Special, you can compare the effects of market volatilities on Pgim Jennison and Sterling Capital 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 Sterling Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pgim Jennison and Sterling Capital.
Diversification Opportunities for Pgim Jennison and Sterling Capital
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PGIM and Sterling is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Jennison Technology and Sterling Capital Special in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling Capital Special 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 Sterling Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sterling Capital Special has no effect on the direction of Pgim Jennison i.e., Pgim Jennison and Sterling Capital go up and down completely randomly.
Pair Corralation between Pgim Jennison and Sterling Capital
Assuming the 90 days horizon Pgim Jennison Technology is expected to generate 1.37 times more return on investment than Sterling Capital. However, Pgim Jennison is 1.37 times more volatile than Sterling Capital Special. It trades about 0.02 of its potential returns per unit of risk. Sterling Capital Special is currently generating about -0.01 per unit of risk. If you would invest 2,324 in Pgim Jennison Technology on December 2, 2024 and sell it today you would earn a total of 92.00 from holding Pgim Jennison Technology or generate 3.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pgim Jennison Technology vs. Sterling Capital Special
Performance |
| Timeline |
| Pgim Jennison Technology |
| Sterling Capital Special |
Pgim Jennison and Sterling Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pgim Jennison and Sterling Capital
The main advantage of trading using opposite Pgim Jennison and Sterling Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pgim Jennison position performs unexpectedly, Sterling Capital 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 Sterling Capital will offset losses from the drop in Sterling Capital's long position.| Pgim Jennison vs. Diversified Real Asset | Pgim Jennison vs. Jpmorgan Diversified Fund | Pgim Jennison vs. Jhancock Diversified Macro | Pgim Jennison vs. Lord Abbett Diversified |
| Sterling Capital vs. Diversified Real Asset | Sterling Capital vs. Harbor Diversified International | Sterling Capital vs. Fidelity Advisor Diversified | Sterling Capital vs. Jpmorgan Diversified Fund |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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