Correlation Between Pgim Securitized and Pgim Jennison
Can any of the company-specific risk be diversified away by investing in both Pgim Securitized and Pgim Jennison 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 Securitized and Pgim Jennison into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pgim Securitized Credit and Pgim Jennison International, you can compare the effects of market volatilities on Pgim Securitized and Pgim Jennison 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 Securitized with a short position of Pgim Jennison. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pgim Securitized and Pgim Jennison.
Diversification Opportunities for Pgim Securitized and Pgim Jennison
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pgim and Pgim is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Securitized Credit and Pgim Jennison International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pgim Jennison Intern and Pgim Securitized 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 Securitized Credit are associated (or correlated) with Pgim Jennison. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pgim Jennison Intern has no effect on the direction of Pgim Securitized i.e., Pgim Securitized and Pgim Jennison go up and down completely randomly.
Pair Corralation between Pgim Securitized and Pgim Jennison
Assuming the 90 days horizon Pgim Securitized Credit is expected to generate 0.15 times more return on investment than Pgim Jennison. However, Pgim Securitized Credit is 6.69 times less risky than Pgim Jennison. It trades about 0.28 of its potential returns per unit of risk. Pgim Jennison International is currently generating about -0.21 per unit of risk. If you would invest 968.00 in Pgim Securitized Credit on August 24, 2024 and sell it today you would earn a total of 6.00 from holding Pgim Securitized Credit or generate 0.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Pgim Securitized Credit vs. Pgim Jennison International
Performance |
| Timeline |
| Pgim Securitized Credit |
| Pgim Jennison Intern |
Pgim Securitized and Pgim Jennison Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pgim Securitized and Pgim Jennison
The main advantage of trading using opposite Pgim Securitized and Pgim Jennison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pgim Securitized position performs unexpectedly, Pgim Jennison 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 Jennison will offset losses from the drop in Pgim Jennison's long position.| Pgim Securitized vs. Blackrock Strategic Income | Pgim Securitized vs. Blackrock Strategic Opps | Pgim Securitized vs. Blackrock Strategic Opps | Pgim Securitized vs. Jpmorgan Strategic Income |
| Pgim Jennison vs. Fidelity Stock Selector | Pgim Jennison vs. Fisher Large Cap | Pgim Jennison vs. Dodge Cox Stock | Pgim Jennison vs. Touchstone Large Cap |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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