Correlation Between Prudential Jennison and Artisan Small
Can any of the company-specific risk be diversified away by investing in both Prudential Jennison and Artisan Small 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 Jennison and Artisan Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prudential Jennison Growth and Artisan Small Cap, you can compare the effects of market volatilities on Prudential Jennison and Artisan Small 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 Jennison with a short position of Artisan Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prudential Jennison and Artisan Small.
Diversification Opportunities for Prudential Jennison and Artisan Small
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Prudential and Artisan is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Prudential Jennison Growth and Artisan Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Small Cap and Prudential 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 Prudential Jennison Growth are associated (or correlated) with Artisan Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Small Cap has no effect on the direction of Prudential Jennison i.e., Prudential Jennison and Artisan Small go up and down completely randomly.
Pair Corralation between Prudential Jennison and Artisan Small
Assuming the 90 days horizon Prudential Jennison Growth is expected to generate 0.52 times more return on investment than Artisan Small. However, Prudential Jennison Growth is 1.91 times less risky than Artisan Small. It trades about 0.23 of its potential returns per unit of risk. Artisan Small Cap is currently generating about -0.1 per unit of risk. If you would invest 4,544 in Prudential Jennison Growth on September 13, 2024 and sell it today you would earn a total of 211.00 from holding Prudential Jennison Growth or generate 4.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Prudential Jennison Growth vs. Artisan Small Cap
Performance |
| Timeline |
| Prudential Jennison |
| Artisan Small Cap |
Prudential Jennison and Artisan Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prudential Jennison and Artisan Small
The main advantage of trading using opposite Prudential Jennison and Artisan Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prudential Jennison position performs unexpectedly, Artisan Small 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 Artisan Small will offset losses from the drop in Artisan Small's long position.| Prudential Jennison vs. Us Vector Equity | Prudential Jennison vs. Artisan Select Equity | Prudential Jennison vs. Scharf Fund Retail | Prudential Jennison vs. Calamos Global Equity |
| Artisan Small vs. Artisan Global Opportunities | Artisan Small vs. Wasatch Ultra Growth | Artisan Small vs. Artisan International Value | Artisan Small vs. Artisan Mid 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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