Correlation Between Pgim Jennison and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Pgim Jennison and Eaton Vance 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 Eaton Vance 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 Eaton Vance Floating Rate, you can compare the effects of market volatilities on Pgim Jennison and Eaton Vance 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 Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pgim Jennison and Eaton Vance.
Diversification Opportunities for Pgim Jennison and Eaton Vance
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pgim and Eaton is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Jennison Diversified and Eaton Vance Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Floating 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 Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance Floating has no effect on the direction of Pgim Jennison i.e., Pgim Jennison and Eaton Vance go up and down completely randomly.
Pair Corralation between Pgim Jennison and Eaton Vance
Assuming the 90 days horizon Pgim Jennison Diversified is expected to generate 7.76 times more return on investment than Eaton Vance. However, Pgim Jennison is 7.76 times more volatile than Eaton Vance Floating Rate. It trades about 0.07 of its potential returns per unit of risk. Eaton Vance Floating Rate is currently generating about 0.18 per unit of risk. If you would invest 1,874 in Pgim Jennison Diversified on September 1, 2024 and sell it today you would earn a total of 276.00 from holding Pgim Jennison Diversified or generate 14.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pgim Jennison Diversified vs. Eaton Vance Floating Rate
Performance |
| Timeline |
| Pgim Jennison Diversified |
| Eaton Vance Floating |
Pgim Jennison and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pgim Jennison and Eaton Vance
The main advantage of trading using opposite Pgim Jennison and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pgim Jennison position performs unexpectedly, Eaton Vance 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 Eaton Vance will offset losses from the drop in Eaton Vance's long position.| Pgim Jennison vs. Alliancebernstein National Municipal | Pgim Jennison vs. Old Westbury Municipal | Pgim Jennison vs. T Rowe Price | Pgim Jennison vs. California High Yield Municipal |
| Eaton Vance vs. Oppenheimer International Diversified | Eaton Vance vs. Tax Managed Mid Small | Eaton Vance vs. Blackrock Sm Cap | Eaton Vance vs. Pgim Jennison Diversified |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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