Correlation Between Ambrus Core and Prudential Jennison
Can any of the company-specific risk be diversified away by investing in both Ambrus Core and Prudential Jennison 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 Ambrus Core and Prudential Jennison into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ambrus Core Bond and Prudential Jennison Financial, you can compare the effects of market volatilities on Ambrus Core and Prudential Jennison 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 Ambrus Core with a short position of Prudential Jennison. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambrus Core and Prudential Jennison.
Diversification Opportunities for Ambrus Core and Prudential Jennison
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ambrus and Prudential is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Ambrus Core Bond and Prudential Jennison Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prudential Jennison and Ambrus Core 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 Ambrus Core Bond are associated (or correlated) with Prudential Jennison. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prudential Jennison has no effect on the direction of Ambrus Core i.e., Ambrus Core and Prudential Jennison go up and down completely randomly.
Pair Corralation between Ambrus Core and Prudential Jennison
Assuming the 90 days horizon Ambrus Core Bond is expected to generate 0.22 times more return on investment than Prudential Jennison. However, Ambrus Core Bond is 4.58 times less risky than Prudential Jennison. It trades about 0.26 of its potential returns per unit of risk. Prudential Jennison Financial is currently generating about -0.16 per unit of risk. If you would invest 987.00 in Ambrus Core Bond on November 27, 2024 and sell it today you would earn a total of 9.00 from holding Ambrus Core Bond or generate 0.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ambrus Core Bond vs. Prudential Jennison Financial
Performance |
| Timeline |
| Ambrus Core Bond |
| Prudential Jennison |
Ambrus Core and Prudential Jennison Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ambrus Core and Prudential Jennison
The main advantage of trading using opposite Ambrus Core and Prudential Jennison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambrus Core position performs unexpectedly, Prudential Jennison 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 Prudential Jennison will offset losses from the drop in Prudential Jennison's long position.| Ambrus Core vs. Ab Bond Inflation | Ambrus Core vs. Fidelity Sai Inflationfocused | Ambrus Core vs. Ab Bond Inflation | Ambrus Core vs. The Hartford Inflation |
| Prudential Jennison vs. Ab High Income | Prudential Jennison vs. Pace High Yield | Prudential Jennison vs. Access Flex High | Prudential Jennison vs. Transamerica 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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