Prudential Financial Correlations

PFH Stock

USD 18.06 0.03 0.17%

The current 90-days correlation between Prudential Financial 4125 and Southern Company Series is 0.9 (i.e., Almost no diversification). The correlation of Prudential Financial is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Prudential Financial Correlation With Market

Weak diversification

The correlation between Prudential Financial 4125 and DJI is 0.38 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Prudential Financial 4125 and DJI in the same portfolio, assuming nothing else is changed.

Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Prudential Financial 4125. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in census.

For more detail on how to invest in Prudential Stock please use our How to Invest in Prudential Financial guide.

Moving against Prudential Stock

0.55	NG	NovaGold Resources	Pair Corr
0.32	IE	Ivanhoe Electric	Pair Corr
0.32	FCX	Freeport McMoran Copper Buyout Trend	Pair Corr

Related Correlations Analysis

	SOJE	KTN	KTH	MGR	TBB
SOJE		-0.05	0.21	0.11	-0.02	SOJE
KTN	-0.05		-0.01	0.5	0.13	KTN
KTH	0.21	-0.01		-0.04	0.16	KTH
MGR	0.11	0.5	-0.04		0.43	MGR
TBB	-0.02	0.13	0.16	0.43		TBB
	SOJE	KTN	KTH	MGR	TBB

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

MGR	+ 0.5	KTN
TBB	+ 0.43	MGR
KTH	+ 0.21	SOJE
TBB	+ 0.16	KTH
TBB	+ 0.13	KTN
MGR	+ 0.11	SOJE

High negative correlations

KTN	- 0.05	SOJE
MGR	- 0.04	KTH
TBB	- 0.02	SOJE
KTH	- 0.01	KTN

Risk-Adjusted Indicators

There is a big difference between Prudential Stock performing well and Prudential Financial Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Prudential Financial's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
SOJE	0.70	(0.03)	0.00	(0.07)	0.00	0.00	1.53	(1.49)	4.19
KTN	0.36	0.02	0.04	(0.27)	0.41	(0.49)	0.88	(0.90)	2.52
KTH	0.56	0.00	(0.01)	(0.17)	0.82	(0.60)	1.55	(1.57)	3.90
MGR	0.63	(0.02)	0.00	(0.06)	0.00	0.00	1.41	(1.07)	3.65
TBB	0.38	(0.03)	0.00	(0.18)	0.00	0.00	0.88	(0.71)	2.06

Prudential Financial Corporate Management

Ann Kappler	Executive Vice President General Counsel	Profile
George Paz	Independent Director	Profile
Michael Todman	Independent Director	Profile
Thomas Baltimore	Lead Independent Director	Profile
Gilbert Casellas	Independent Director	Profile
Nicholas Silitch	Senior Vice President Chief Risk Officer	Profile

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