Correlation Between Pgim Jennison and Americafirst Large
Can any of the company-specific risk be diversified away by investing in both Pgim Jennison and Americafirst Large 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 Americafirst Large 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 Americafirst Large Cap, you can compare the effects of market volatilities on Pgim Jennison and Americafirst Large 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 Americafirst Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pgim Jennison and Americafirst Large.
Diversification Opportunities for Pgim Jennison and Americafirst Large
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PGIM and Americafirst is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Jennison Diversified and Americafirst Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Americafirst Large Cap 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 Americafirst Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Americafirst Large Cap has no effect on the direction of Pgim Jennison i.e., Pgim Jennison and Americafirst Large go up and down completely randomly.
Pair Corralation between Pgim Jennison and Americafirst Large
Assuming the 90 days horizon Pgim Jennison Diversified is expected to generate 1.25 times more return on investment than Americafirst Large. However, Pgim Jennison is 1.25 times more volatile than Americafirst Large Cap. It trades about -0.08 of its potential returns per unit of risk. Americafirst Large Cap is currently generating about -0.25 per unit of risk. If you would invest 1,945 in Pgim Jennison Diversified on November 28, 2024 and sell it today you would lose (33.00) from holding Pgim Jennison Diversified or give up 1.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Pgim Jennison Diversified vs. Americafirst Large Cap
Performance |
| Timeline |
| Pgim Jennison Diversified |
| Americafirst Large Cap |
Pgim Jennison and Americafirst Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pgim Jennison and Americafirst Large
The main advantage of trading using opposite Pgim Jennison and Americafirst Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pgim Jennison position performs unexpectedly, Americafirst Large 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 Americafirst Large will offset losses from the drop in Americafirst Large's long position.| Pgim Jennison vs. Pace International Emerging | Pgim Jennison vs. Barings Emerging Markets | Pgim Jennison vs. Doubleline Emerging Markets | Pgim Jennison vs. Investec Emerging Markets |
| Americafirst Large vs. Pace High Yield | Americafirst Large vs. Pace High Yield | Americafirst Large vs. Artisan High Income | Americafirst Large vs. Prudential High Yield |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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