Correlation Between Pgim Jennison and Dfa Social
Can any of the company-specific risk be diversified away by investing in both Pgim Jennison and Dfa Social 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 Dfa Social into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pgim Jennison Diversified and Dfa Social Fixed, you can compare the effects of market volatilities on Pgim Jennison and Dfa Social 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 Dfa Social. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pgim Jennison and Dfa Social.
Diversification Opportunities for Pgim Jennison and Dfa Social
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pgim and Dfa is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Jennison Diversified and Dfa Social Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dfa Social Fixed 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 Diversified are associated (or correlated) with Dfa Social. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dfa Social Fixed has no effect on the direction of Pgim Jennison i.e., Pgim Jennison and Dfa Social go up and down completely randomly.
Pair Corralation between Pgim Jennison and Dfa Social
Assuming the 90 days horizon Pgim Jennison Diversified is expected to generate 2.47 times more return on investment than Dfa Social. However, Pgim Jennison is 2.47 times more volatile than Dfa Social Fixed. It trades about 0.1 of its potential returns per unit of risk. Dfa Social Fixed is currently generating about 0.1 per unit of risk. If you would invest 2,153 in Pgim Jennison Diversified on September 12, 2024 and sell it today you would earn a total of 41.00 from holding Pgim Jennison Diversified or generate 1.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Pgim Jennison Diversified vs. Dfa Social Fixed
Performance |
| Timeline |
| Pgim Jennison Diversified |
| Dfa Social Fixed |
Pgim Jennison and Dfa Social Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pgim Jennison and Dfa Social
The main advantage of trading using opposite Pgim Jennison and Dfa Social positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pgim Jennison position performs unexpectedly, Dfa Social 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 Dfa Social will offset losses from the drop in Dfa Social's long position.| Pgim Jennison vs. American Funds The | Pgim Jennison vs. American Funds The | Pgim Jennison vs. Growth Fund Of | Pgim Jennison vs. Growth Fund Of |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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