Correlation Between Pgim High and Summit Global
Can any of the company-specific risk be diversified away by investing in both Pgim High and Summit Global 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 High and Summit Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pgim High Yield and Summit Global Investments, you can compare the effects of market volatilities on Pgim High and Summit Global 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 High with a short position of Summit Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pgim High and Summit Global.
Diversification Opportunities for Pgim High and Summit Global
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pgim and Summit is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Pgim High Yield and Summit Global Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Global Investments and Pgim High 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 High Yield are associated (or correlated) with Summit Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Global Investments has no effect on the direction of Pgim High i.e., Pgim High and Summit Global go up and down completely randomly.
Pair Corralation between Pgim High and Summit Global
Assuming the 90 days horizon Pgim High Yield is expected to generate 0.48 times more return on investment than Summit Global. However, Pgim High Yield is 2.08 times less risky than Summit Global. It trades about 0.23 of its potential returns per unit of risk. Summit Global Investments is currently generating about 0.05 per unit of risk. If you would invest 479.00 in Pgim High Yield on December 1, 2024 and sell it today you would earn a total of 5.00 from holding Pgim High Yield or generate 1.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pgim High Yield vs. Summit Global Investments
Performance |
| Timeline |
| Pgim High Yield |
| Summit Global Investments |
Pgim High and Summit Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pgim High and Summit Global
The main advantage of trading using opposite Pgim High and Summit Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pgim High position performs unexpectedly, Summit Global 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 Summit Global will offset losses from the drop in Summit Global's long position.| Pgim High vs. Flexible Bond Portfolio | Pgim High vs. Versatile Bond Portfolio | Pgim High vs. Buffalo High Yield | Pgim High vs. Ms Global Fixed |
| Summit Global vs. Old Westbury Small | Summit Global vs. Ab Small Cap | Summit Global vs. Small Pany Growth | Summit Global vs. Nuveen Small 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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