Correlation Between Prudential Jennison and Franklin Dynatech
Can any of the company-specific risk be diversified away by investing in both Prudential Jennison and Franklin Dynatech 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 Franklin Dynatech 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 Franklin Dynatech Fund, you can compare the effects of market volatilities on Prudential Jennison and Franklin Dynatech 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 Franklin Dynatech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prudential Jennison and Franklin Dynatech.
Diversification Opportunities for Prudential Jennison and Franklin Dynatech
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Prudential and Franklin is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Prudential Jennison Internatio and Franklin Dynatech Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Dynatech 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 Franklin Dynatech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Dynatech has no effect on the direction of Prudential Jennison i.e., Prudential Jennison and Franklin Dynatech go up and down completely randomly.
Pair Corralation between Prudential Jennison and Franklin Dynatech
Assuming the 90 days horizon Prudential Jennison International is expected to generate 0.74 times more return on investment than Franklin Dynatech. However, Prudential Jennison International is 1.36 times less risky than Franklin Dynatech. It trades about 0.2 of its potential returns per unit of risk. Franklin Dynatech Fund is currently generating about -0.13 per unit of risk. If you would invest 3,172 in Prudential Jennison International on November 28, 2024 and sell it today you would earn a total of 125.00 from holding Prudential Jennison International or generate 3.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prudential Jennison Internatio vs. Franklin Dynatech Fund
Performance |
| Timeline |
| Prudential Jennison |
| Franklin Dynatech |
Prudential Jennison and Franklin Dynatech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prudential Jennison and Franklin Dynatech
The main advantage of trading using opposite Prudential Jennison and Franklin Dynatech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prudential Jennison position performs unexpectedly, Franklin Dynatech 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 Franklin Dynatech will offset losses from the drop in Franklin Dynatech's long position.| Prudential Jennison vs. Hartford Schroders Emerging | Prudential Jennison vs. Ep Emerging Markets | Prudential Jennison vs. Mondrian Emerging Markets | Prudential Jennison vs. The Hartford Emerging |
| Franklin Dynatech vs. Mfs International Diversification | Franklin Dynatech vs. John Hancock Bond | Franklin Dynatech vs. Lord Abbett Bond | Franklin Dynatech vs. Prudential Total Return |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |