Correlation Between Ab Impact and Pgim Jennison
Can any of the company-specific risk be diversified away by investing in both Ab Impact 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 Ab Impact and Pgim Jennison into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Impact Municipal and Pgim Jennison Diversified, you can compare the effects of market volatilities on Ab Impact 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 Ab Impact with a short position of Pgim Jennison. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Impact and Pgim Jennison.
Diversification Opportunities for Ab Impact and Pgim Jennison
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between ABIMX and Pgim is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Ab Impact Municipal 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 Ab Impact 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 Ab Impact Municipal 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 Ab Impact i.e., Ab Impact and Pgim Jennison go up and down completely randomly.
Pair Corralation between Ab Impact and Pgim Jennison
Assuming the 90 days horizon Ab Impact Municipal is expected to generate 0.2 times more return on investment than Pgim Jennison. However, Ab Impact Municipal is 5.1 times less risky than Pgim Jennison. It trades about 0.03 of its potential returns per unit of risk. Pgim Jennison Diversified is currently generating about -0.09 per unit of risk. If you would invest 963.00 in Ab Impact Municipal on December 27, 2024 and sell it today you would earn a total of 4.00 from holding Ab Impact Municipal or generate 0.42% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Ab Impact Municipal vs. Pgim Jennison Diversified
Performance |
Timeline |
Ab Impact Municipal |
Pgim Jennison Diversified |
Ab Impact and Pgim Jennison Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ab Impact and Pgim Jennison
The main advantage of trading using opposite Ab Impact and Pgim Jennison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Impact 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.Ab Impact vs. Old Westbury Short Term | Ab Impact vs. Vanguard Ultra Short Term Bond | Ab Impact vs. Prudential Short Duration | Ab Impact vs. Franklin Federal Limited Term |
Pgim Jennison vs. Deutsche Health And | Pgim Jennison vs. Vanguard Health Care | Pgim Jennison vs. Baillie Gifford Health | Pgim Jennison vs. Fidelity Advisor Health |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Share Portfolio Track or share privately all of your investments from the convenience of any device |