Correlation Between Prudential Jennison and Chase Growth
Can any of the company-specific risk be diversified away by investing in both Prudential Jennison and Chase Growth 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 Chase Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prudential Jennison International and Chase Growth Fund, you can compare the effects of market volatilities on Prudential Jennison and Chase Growth 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 Chase Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prudential Jennison and Chase Growth.
Diversification Opportunities for Prudential Jennison and Chase Growth
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Prudential and Chase is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Prudential Jennison Internatio and Chase Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chase Growth 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 International are associated (or correlated) with Chase Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chase Growth has no effect on the direction of Prudential Jennison i.e., Prudential Jennison and Chase Growth go up and down completely randomly.
Pair Corralation between Prudential Jennison and Chase Growth
Assuming the 90 days horizon Prudential Jennison International is expected to generate 0.21 times more return on investment than Chase Growth. However, Prudential Jennison International is 4.67 times less risky than Chase Growth. It trades about 0.07 of its potential returns per unit of risk. Chase Growth Fund is currently generating about -0.19 per unit of risk. If you would invest 3,106 in Prudential Jennison International on September 13, 2024 and sell it today you would earn a total of 33.00 from holding Prudential Jennison International or generate 1.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prudential Jennison Internatio vs. Chase Growth Fund
Performance |
| Timeline |
| Prudential Jennison |
| Chase Growth |
Prudential Jennison and Chase Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prudential Jennison and Chase Growth
The main advantage of trading using opposite Prudential Jennison and Chase Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prudential Jennison position performs unexpectedly, Chase Growth 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 Chase Growth will offset losses from the drop in Chase Growth's long position.| Prudential Jennison vs. Jhancock Global Equity | Prudential Jennison vs. Ab Global Bond | Prudential Jennison vs. Alliancebernstein Global High | Prudential Jennison vs. Ab Global Real |
| Chase Growth vs. Mirova Global Green | Chase Growth vs. Commonwealth Global Fund | Chase Growth vs. Morningstar Global Income | Chase Growth vs. Siit Global Managed |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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