Correlation Between Westwood Smallcap and Pgim Jennison
Can any of the company-specific risk be diversified away by investing in both Westwood Smallcap 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 Westwood Smallcap and Pgim Jennison into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Westwood Smallcap Growth and Pgim Jennison Technology, you can compare the effects of market volatilities on Westwood Smallcap 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 Westwood Smallcap with a short position of Pgim Jennison. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westwood Smallcap and Pgim Jennison.
Diversification Opportunities for Westwood Smallcap and Pgim Jennison
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Westwood and Pgim is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Westwood Smallcap Growth and Pgim Jennison Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pgim Jennison Technology and Westwood Smallcap 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 Westwood Smallcap Growth 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 Technology has no effect on the direction of Westwood Smallcap i.e., Westwood Smallcap and Pgim Jennison go up and down completely randomly.
Pair Corralation between Westwood Smallcap and Pgim Jennison
If you would invest 1,851 in Pgim Jennison Technology on September 4, 2024 and sell it today you would earn a total of 833.00 from holding Pgim Jennison Technology or generate 45.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Westwood Smallcap Growth vs. Pgim Jennison Technology
Performance |
| Timeline |
| Westwood Smallcap Growth |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Pgim Jennison Technology |
Westwood Smallcap and Pgim Jennison Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westwood Smallcap and Pgim Jennison
The main advantage of trading using opposite Westwood Smallcap and Pgim Jennison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westwood Smallcap 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.| Westwood Smallcap vs. Gmo Resources | Westwood Smallcap vs. Dreyfus Natural Resources | Westwood Smallcap vs. Franklin Natural Resources | Westwood Smallcap vs. Tortoise Energy Independence |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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