Correlation Between Vanguard Explorer and Pgim Jennison
Can any of the company-specific risk be diversified away by investing in both Vanguard Explorer and Pgim 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 Vanguard Explorer and Pgim Jennison into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Explorer Value and Pgim Jennison Diversified, you can compare the effects of market volatilities on Vanguard Explorer and Pgim 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 Vanguard Explorer with a short position of Pgim Jennison. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Explorer and Pgim Jennison.
Diversification Opportunities for Vanguard Explorer and Pgim Jennison
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vanguard and Pgim is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Explorer Value and Pgim Jennison Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pgim Jennison Diversified and Vanguard Explorer 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 Vanguard Explorer Value are associated (or correlated) with Pgim Jennison. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pgim Jennison Diversified has no effect on the direction of Vanguard Explorer i.e., Vanguard Explorer and Pgim Jennison go up and down completely randomly.
Pair Corralation between Vanguard Explorer and Pgim Jennison
If you would invest 3,909 in Vanguard Explorer Value on August 27, 2024 and sell it today you would earn a total of 1,364 from holding Vanguard Explorer Value or generate 34.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Vanguard Explorer Value vs. Pgim Jennison Diversified
Performance |
| Timeline |
| Vanguard Explorer Value |
| Pgim Jennison Diversified |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Vanguard Explorer and Pgim Jennison Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Explorer and Pgim Jennison
The main advantage of trading using opposite Vanguard Explorer and Pgim Jennison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Explorer position performs unexpectedly, Pgim 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 Pgim Jennison will offset losses from the drop in Pgim Jennison's long position.| Vanguard Explorer vs. Vanguard Strategic Small Cap | Vanguard Explorer vs. Vanguard Emerging Markets | Vanguard Explorer vs. Vanguard Diversified Equity | Vanguard Explorer vs. Vanguard Mid Cap |
| Pgim Jennison vs. Franklin Natural Resources | Pgim Jennison vs. Goehring Rozencwajg Resources | Pgim Jennison vs. Calvert Global Energy | Pgim Jennison vs. Short Oil Gas |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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