Correlation Between Prudential Jennison and Ab Bond
Can any of the company-specific risk be diversified away by investing in both Prudential Jennison and Ab Bond 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 Ab Bond into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prudential Jennison Equity and Ab Bond Inflation, you can compare the effects of market volatilities on Prudential Jennison and Ab Bond 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 Ab Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prudential Jennison and Ab Bond.
Diversification Opportunities for Prudential Jennison and Ab Bond
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Prudential and ABNTX is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Prudential Jennison Equity and Ab Bond Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Bond Inflation 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 Equity are associated (or correlated) with Ab Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Bond Inflation has no effect on the direction of Prudential Jennison i.e., Prudential Jennison and Ab Bond go up and down completely randomly.
Pair Corralation between Prudential Jennison and Ab Bond
Assuming the 90 days horizon Prudential Jennison Equity is expected to generate 3.81 times more return on investment than Ab Bond. However, Prudential Jennison is 3.81 times more volatile than Ab Bond Inflation. It trades about 0.15 of its potential returns per unit of risk. Ab Bond Inflation is currently generating about 0.12 per unit of risk. If you would invest 1,582 in Prudential Jennison Equity on August 31, 2024 and sell it today you would earn a total of 247.00 from holding Prudential Jennison Equity or generate 15.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prudential Jennison Equity vs. Ab Bond Inflation
Performance |
| Timeline |
| Prudential Jennison |
| Ab Bond Inflation |
Prudential Jennison and Ab Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prudential Jennison and Ab Bond
The main advantage of trading using opposite Prudential Jennison and Ab Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prudential Jennison position performs unexpectedly, Ab Bond 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 Ab Bond will offset losses from the drop in Ab Bond's long position.| Prudential Jennison vs. Bbh Intermediate Municipal | Prudential Jennison vs. Inflation Protected Bond Fund | Prudential Jennison vs. T Rowe Price | Prudential Jennison vs. Calamos Short Term Bond |
| Ab Bond vs. Vanguard Short Term Inflation Protected | Ab Bond vs. HUMANA INC | Ab Bond vs. Aquagold International | Ab Bond vs. Barloworld Ltd ADR |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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