Correlation Between Exodus Movement, and Pgim Jennison

Can any of the company-specific risk be diversified away by investing in both Exodus Movement, 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 Exodus Movement, and Pgim Jennison into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Exodus Movement, and Pgim Jennison Technology, you can compare the effects of market volatilities on Exodus Movement, 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 Exodus Movement, with a short position of Pgim Jennison. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exodus Movement, and Pgim Jennison.

Diversification Opportunities for Exodus Movement, and Pgim Jennison

0.19

Correlation Coefficient

Exodus Movement,  Pgim Jennison

Average diversification

The 3 months correlation between Exodus and Pgim is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Exodus Movement, 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 Exodus Movement, 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 Exodus Movement, 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 Exodus Movement, i.e., Exodus Movement, and Pgim Jennison go up and down completely randomly.

Pair Corralation between Exodus Movement, and Pgim Jennison

Given the investment horizon of 90 days Exodus Movement, is expected to generate 8.98 times more return on investment than Pgim Jennison. However, Exodus Movement, is 8.98 times more volatile than Pgim Jennison Technology. It trades about 0.03 of its potential returns per unit of risk. Pgim Jennison Technology is currently generating about 0.1 per unit of risk. If you would invest  4,100  in Exodus Movement, on October 21, 2024 and sell it today you would lose (249.00) from holding Exodus Movement, or give up 6.07% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Exodus Movement,  vs.  Pgim Jennison Technology

Exodus Movement,

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Exodus Movement, are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, Exodus Movement, exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pgim Jennison Technology

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Pgim Jennison Technology are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Pgim Jennison is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Exodus Movement, and Pgim Jennison

The main advantage of trading using opposite Exodus Movement, and Pgim Jennison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exodus Movement, 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.

The idea behind Exodus Movement, and Pgim Jennison Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.