Correlation Between Pgim Jennison and Franklin Utilities
Can any of the company-specific risk be diversified away by investing in both Pgim Jennison and Franklin Utilities 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 Franklin Utilities 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 Franklin Utilities Fund, you can compare the effects of market volatilities on Pgim Jennison and Franklin Utilities 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 Franklin Utilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pgim Jennison and Franklin Utilities.
Diversification Opportunities for Pgim Jennison and Franklin Utilities
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pgim and Franklin is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Jennison Diversified and Franklin Utilities Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Utilities 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 Franklin Utilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Utilities has no effect on the direction of Pgim Jennison i.e., Pgim Jennison and Franklin Utilities go up and down completely randomly.
Pair Corralation between Pgim Jennison and Franklin Utilities
Assuming the 90 days horizon Pgim Jennison Diversified is expected to generate 1.12 times more return on investment than Franklin Utilities. However, Pgim Jennison is 1.12 times more volatile than Franklin Utilities Fund. It trades about 0.18 of its potential returns per unit of risk. Franklin Utilities Fund is currently generating about -0.05 per unit of risk. If you would invest 2,154 in Pgim Jennison Diversified on September 13, 2024 and sell it today you would earn a total of 78.00 from holding Pgim Jennison Diversified or generate 3.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pgim Jennison Diversified vs. Franklin Utilities Fund
Performance |
| Timeline |
| Pgim Jennison Diversified |
| Franklin Utilities |
Pgim Jennison and Franklin Utilities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pgim Jennison and Franklin Utilities
The main advantage of trading using opposite Pgim Jennison and Franklin Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pgim Jennison position performs unexpectedly, Franklin Utilities 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 Utilities will offset losses from the drop in Franklin Utilities' long position.| Pgim Jennison vs. Prudential Jennison International | Pgim Jennison vs. Prudential Jennison International | Pgim Jennison vs. Pgim Jennison International | Pgim Jennison vs. Pgim Jennison International |
| Franklin Utilities vs. Dominion Energy | Franklin Utilities vs. Atlantica Sustainable Infrastructure | Franklin Utilities vs. Consolidated Edison | Franklin Utilities vs. Eversource Energy |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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