Prudential Financial Correlations

PRU Stock

USD 110.27 0.51 0.46%

The current 90-days correlation between Prudential Financial and Aflac Incorporated is 0.68 (i.e., Poor 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. If the correlation is 0, the equities are not correlated; they are entirely random.

Prudential Financial Correlation With Market

Poor diversification

The correlation between Prudential Financial and DJI is 0.64 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Prudential Financial 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. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area.

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

Moving together with Prudential Stock

0.63	DHIL	Diamond Hill Investment	Pair Corr
0.7	AX	Axos Financial	Pair Corr
0.87	BX	Blackstone Group	Pair Corr

Moving against Prudential Stock

0.74	PUK	Prudential PLC ADR	Pair Corr
0.57	LNC	Lincoln National	Pair Corr
0.56	GL	Globe Life	Pair Corr
0.48	UNM	Unum Group	Pair Corr
0.46	CNO	CNO Financial Group	Pair Corr
0.37	BHF	Brighthouse Financial	Pair Corr
0.37	CIA	Citizens	Pair Corr
0.69	ANG-PB	American National	Pair Corr
0.51	CNO-PA	CNO Financial Group	Pair Corr
0.5	V	Visa Class A	Pair Corr
0.47	ABLLW	Abacus Life	Pair Corr
0.34	GL-PD	Globe Life 425	Pair Corr
0.74	LU	Lufax Holding	Pair Corr
0.69	DB	Deutsche Bank AG	Pair Corr
0.69	LX	Lexinfintech Holdings	Pair Corr
0.42	CB	Chubb	Pair Corr

Related Correlations Analysis

	LNC	AFL	BHF	UNM	MET	JXN	MFC	GL	PUK
LNC		0.49	0.89	0.67	0.22	0.06	-0.11	0.83	0.73	LNC
AFL	0.49		0.51	0.87	0.42	-0.1	0.01	0.76	0.67	AFL
BHF	0.89	0.51		0.62	0.36	0.21	-0.13	0.8	0.6	BHF
UNM	0.67	0.87	0.62		0.25	-0.2	-0.07	0.85	0.83	UNM
MET	0.22	0.42	0.36	0.25		0.73	0.37	0.32	-0.16	MET
JXN	0.06	-0.1	0.21	-0.2	0.73		0.26	-0.08	-0.42	JXN
MFC	-0.11	0.01	-0.13	-0.07	0.37	0.26		-0.22	-0.2	MFC
GL	0.83	0.76	0.8	0.85	0.32	-0.08	-0.22		0.77	GL
PUK	0.73	0.67	0.6	0.83	-0.16	-0.42	-0.2	0.77		PUK
	LNC	AFL	BHF	UNM	MET	JXN	MFC	GL	PUK

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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

BHF	+ 0.89	LNC
UNM	+ 0.87	AFL
GL	+ 0.85	UNM
GL	+ 0.83	LNC
PUK	+ 0.83	UNM
GL	+ 0.8	BHF

High negative correlations

PUK	- 0.42	JXN
GL	- 0.22	MFC
PUK	- 0.2	MFC
JXN	- 0.2	UNM
PUK	- 0.16	MET
MFC	- 0.13	BHF

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
LNC	1.60	0.26	0.10	0.12	2.11	(1.60)	3.61	(3.56)	11.30
AFL	0.97	0.11	0.09	0.08	1.35	(0.91)	1.90	(2.31)	7.00
BHF	1.91	0.39	0.14	0.21	2.24	(2.14)	5.67	(4.21)	21.05
UNM	1.08	0.21	0.17	0.19	1.23	(1.25)	2.33	(2.16)	10.02
MET	1.13	0.08	0.04	0.00	1.66	(1.08)	2.18	(3.03)	7.37
JXN	1.96	0.06	0.00	(0.03)	0.00	0.00	3.86	(4.73)	12.81
MFC	1.23	0.07	0.03	0.00	1.83	(1.16)	2.88	(2.90)	11.54
GL	1.05	0.33	0.23	0.40	1.10	(1.08)	2.62	(1.79)	6.74
PUK	1.51	0.42	0.25	0.44	1.48	(1.69)	3.50	(3.20)	9.18

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