Correlation Between Pgim Jennison and Fidelity Salem
Can any of the company-specific risk be diversified away by investing in both Pgim Jennison and Fidelity Salem 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 Fidelity Salem 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 Fidelity Salem Street, you can compare the effects of market volatilities on Pgim Jennison and Fidelity Salem 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 Fidelity Salem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pgim Jennison and Fidelity Salem.
Diversification Opportunities for Pgim Jennison and Fidelity Salem
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pgim and Fidelity is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Jennison Diversified and Fidelity Salem Street in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Salem Street 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 Fidelity Salem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Salem Street has no effect on the direction of Pgim Jennison i.e., Pgim Jennison and Fidelity Salem go up and down completely randomly.
Pair Corralation between Pgim Jennison and Fidelity Salem
Assuming the 90 days horizon Pgim Jennison Diversified is expected to generate 1.33 times more return on investment than Fidelity Salem. However, Pgim Jennison is 1.33 times more volatile than Fidelity Salem Street. It trades about 0.11 of its potential returns per unit of risk. Fidelity Salem Street is currently generating about 0.04 per unit of risk. If you would invest 1,203 in Pgim Jennison Diversified on September 3, 2024 and sell it today you would earn a total of 947.00 from holding Pgim Jennison Diversified or generate 78.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pgim Jennison Diversified vs. Fidelity Salem Street
Performance |
| Timeline |
| Pgim Jennison Diversified |
| Fidelity Salem Street |
Pgim Jennison and Fidelity Salem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pgim Jennison and Fidelity Salem
The main advantage of trading using opposite Pgim Jennison and Fidelity Salem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pgim Jennison position performs unexpectedly, Fidelity Salem 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 Fidelity Salem will offset losses from the drop in Fidelity Salem's long position.| Pgim Jennison vs. Deutsche Health And | Pgim Jennison vs. Highland Longshort Healthcare | Pgim Jennison vs. Live Oak Health | Pgim Jennison vs. Blackrock Health Sciences |
| Fidelity Salem vs. Pgim Jennison Diversified | Fidelity Salem vs. Fuller Thaler Behavioral | Fidelity Salem vs. The Gabelli Small | Fidelity Salem vs. Principal Lifetime Hybrid |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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