Correlation Between Pgim Jennison and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Pgim Jennison and Lord Abbett 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 Lord Abbett 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 Lord Abbett Short, you can compare the effects of market volatilities on Pgim Jennison and Lord Abbett 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 Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pgim Jennison and Lord Abbett.
Diversification Opportunities for Pgim Jennison and Lord Abbett
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Pgim and Lord is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Jennison Diversified and Lord Abbett Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Short 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 Lord Abbett. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lord Abbett Short has no effect on the direction of Pgim Jennison i.e., Pgim Jennison and Lord Abbett go up and down completely randomly.
Pair Corralation between Pgim Jennison and Lord Abbett
Assuming the 90 days horizon Pgim Jennison Diversified is expected to generate 6.67 times more return on investment than Lord Abbett. However, Pgim Jennison is 6.67 times more volatile than Lord Abbett Short. It trades about 0.11 of its potential returns per unit of risk. Lord Abbett Short is currently generating about 0.14 per unit of risk. If you would invest 1,593 in Pgim Jennison Diversified on September 4, 2024 and sell it today you would earn a total of 578.00 from holding Pgim Jennison Diversified or generate 36.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Pgim Jennison Diversified vs. Lord Abbett Short
Performance |
| Timeline |
| Pgim Jennison Diversified |
| Lord Abbett Short |
Pgim Jennison and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pgim Jennison and Lord Abbett
The main advantage of trading using opposite Pgim Jennison and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pgim Jennison position performs unexpectedly, Lord Abbett 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 Lord Abbett will offset losses from the drop in Lord Abbett's 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 |
| Lord Abbett vs. Lord Abbett Trust | Lord Abbett vs. Lord Abbett Trust | Lord Abbett vs. Lord Abbett Focused | Lord Abbett vs. Floating Rate Fund |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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