Correlation Between PGIM Active and BrandywineGLOBAL
Can any of the company-specific risk be diversified away by investing in both PGIM Active and BrandywineGLOBAL 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 Active and BrandywineGLOBAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PGIM Active High and BrandywineGLOBAL Fixed, you can compare the effects of market volatilities on PGIM Active and BrandywineGLOBAL 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 Active with a short position of BrandywineGLOBAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of PGIM Active and BrandywineGLOBAL.
Diversification Opportunities for PGIM Active and BrandywineGLOBAL
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PGIM and BrandywineGLOBAL is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding PGIM Active High and BrandywineGLOBAL Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BrandywineGLOBAL Fixed and PGIM Active 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 Active High are associated (or correlated) with BrandywineGLOBAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BrandywineGLOBAL Fixed has no effect on the direction of PGIM Active i.e., PGIM Active and BrandywineGLOBAL go up and down completely randomly.
Pair Corralation between PGIM Active and BrandywineGLOBAL
Given the investment horizon of 90 days PGIM Active High is expected to generate 0.52 times more return on investment than BrandywineGLOBAL. However, PGIM Active High is 1.94 times less risky than BrandywineGLOBAL. It trades about 0.17 of its potential returns per unit of risk. BrandywineGLOBAL Fixed is currently generating about 0.05 per unit of risk. If you would invest 3,146 in PGIM Active High on September 4, 2024 and sell it today you would earn a total of 383.00 from holding PGIM Active High or generate 12.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PGIM Active High vs. BrandywineGLOBAL Fixed
Performance |
| Timeline |
| PGIM Active High |
| BrandywineGLOBAL Fixed |
PGIM Active and BrandywineGLOBAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PGIM Active and BrandywineGLOBAL
The main advantage of trading using opposite PGIM Active and BrandywineGLOBAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PGIM Active position performs unexpectedly, BrandywineGLOBAL 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 BrandywineGLOBAL will offset losses from the drop in BrandywineGLOBAL's long position.| PGIM Active vs. iShares iBoxx Investment | PGIM Active vs. SPDR Bloomberg High | PGIM Active vs. iShares TIPS Bond | PGIM Active vs. iShares 20 Year |
| BrandywineGLOBAL vs. Valued Advisers Trust | BrandywineGLOBAL vs. Columbia Diversified Fixed | BrandywineGLOBAL vs. Principal Exchange Traded Funds | BrandywineGLOBAL vs. Doubleline Etf Trust |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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