Correlation Between Prudential High and Salient Frontier
Can any of the company-specific risk be diversified away by investing in both Prudential High and Salient Frontier 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 Prudential High and Salient Frontier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prudential High Yield and Salient Frontier Strategy, you can compare the effects of market volatilities on Prudential High and Salient Frontier 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 Prudential High with a short position of Salient Frontier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prudential High and Salient Frontier.
Diversification Opportunities for Prudential High and Salient Frontier
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Prudential and Salient is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Prudential High Yield and Salient Frontier Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salient Frontier Strategy and Prudential 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 Prudential High Yield are associated (or correlated) with Salient Frontier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salient Frontier Strategy has no effect on the direction of Prudential High i.e., Prudential High and Salient Frontier go up and down completely randomly.
Pair Corralation between Prudential High and Salient Frontier
If you would invest 482.00 in Prudential High Yield on September 1, 2024 and sell it today you would earn a total of 1.00 from holding Prudential High Yield or generate 0.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Prudential High Yield vs. Salient Frontier Strategy
Performance |
| Timeline |
| Prudential High Yield |
| Salient Frontier Strategy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Prudential High and Salient Frontier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prudential High and Salient Frontier
The main advantage of trading using opposite Prudential High and Salient Frontier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prudential High position performs unexpectedly, Salient Frontier 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 Salient Frontier will offset losses from the drop in Salient Frontier's long position.| Prudential High vs. Boston Partners Small | Prudential High vs. Pace Smallmedium Value | Prudential High vs. Lord Abbett Small | Prudential High vs. Mid Cap Value Profund |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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