Correlation Between Pgim Jennison and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Pgim Jennison and Dow Jones 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 Jennison and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pgim Jennison Natural and Dow Jones Industrial, you can compare the effects of market volatilities on Pgim Jennison and Dow Jones 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 Jennison with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pgim Jennison and Dow Jones.
Diversification Opportunities for Pgim Jennison and Dow Jones
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pgim and Dow is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Jennison Natural and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Pgim 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 Pgim Jennison Natural are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Pgim Jennison i.e., Pgim Jennison and Dow Jones go up and down completely randomly.
Pair Corralation between Pgim Jennison and Dow Jones
Assuming the 90 days horizon Pgim Jennison is expected to generate 5.81 times less return on investment than Dow Jones. In addition to that, Pgim Jennison is 1.83 times more volatile than Dow Jones Industrial. It trades about 0.01 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.12 per unit of volatility. If you would invest 3,464,197 in Dow Jones Industrial on August 30, 2024 and sell it today you would earn a total of 1,008,009 from holding Dow Jones Industrial or generate 29.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pgim Jennison Natural vs. Dow Jones Industrial
Performance |
| Timeline |
Pgim Jennison and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Pgim Jennison Natural
Pair trading matchups for Pgim Jennison
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Pgim Jennison and Dow Jones
The main advantage of trading using opposite Pgim Jennison and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pgim Jennison position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Pgim Jennison vs. Guinness Atkinson Alternative | Pgim Jennison vs. Gamco Natural Resources | Pgim Jennison vs. Icon Natural Resources | Pgim Jennison vs. Fidelity Advisor Energy |
| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |