Correlation Between Pgim Jennison and Pgim High
Can any of the company-specific risk be diversified away by investing in both Pgim Jennison and Pgim High 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 Pgim High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pgim Jennison International and Pgim High Yield, you can compare the effects of market volatilities on Pgim Jennison and Pgim High 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 Pgim High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pgim Jennison and Pgim High.
Diversification Opportunities for Pgim Jennison and Pgim High
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pgim and Pgim is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Jennison International and Pgim High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pgim High Yield 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 International are associated (or correlated) with Pgim High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pgim High Yield has no effect on the direction of Pgim Jennison i.e., Pgim Jennison and Pgim High go up and down completely randomly.
Pair Corralation between Pgim Jennison and Pgim High
Assuming the 90 days horizon Pgim Jennison International is expected to generate 3.45 times more return on investment than Pgim High. However, Pgim Jennison is 3.45 times more volatile than Pgim High Yield. It trades about 0.05 of its potential returns per unit of risk. Pgim High Yield is currently generating about 0.12 per unit of risk. If you would invest 2,402 in Pgim Jennison International on September 2, 2024 and sell it today you would earn a total of 629.00 from holding Pgim Jennison International or generate 26.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pgim Jennison International vs. Pgim High Yield
Performance |
| Timeline |
| Pgim Jennison Intern |
| Pgim High Yield |
Pgim Jennison and Pgim High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pgim Jennison and Pgim High
The main advantage of trading using opposite Pgim Jennison and Pgim High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pgim Jennison position performs unexpectedly, Pgim High 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 Pgim High will offset losses from the drop in Pgim High's long position.| Pgim Jennison vs. Pgim Jennison International | Pgim Jennison vs. Prudential Short Duration | Pgim Jennison vs. Prudential Emerging Markets | Pgim Jennison vs. Prudential Floating Rate |
| Pgim High vs. Prudential Jennison International | Pgim High vs. Prudential Jennison International | Pgim High vs. Pgim Jennison International | Pgim High vs. Pgim Jennison International |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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