Correlation Between Pgim Global and Nuveen Real

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

By analyzing existing cross correlation between Pgim Global High and Nuveen Real Asset, you can compare the effects of market volatilities on Pgim Global and Nuveen Real 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 Pgim Global with a short position of Nuveen Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pgim Global and Nuveen Real.

Diversification Opportunities for Pgim Global and Nuveen Real

0.77

Correlation Coefficient

Pgim Global  Nuveen Real

Poor diversification

The 3 months correlation between Pgim and Nuveen is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Global High and Nuveen Real Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Real Asset and Pgim Global 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 Pgim Global High are associated (or correlated) with Nuveen Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Real Asset has no effect on the direction of Pgim Global i.e., Pgim Global and Nuveen Real go up and down completely randomly.

Pair Corralation between Pgim Global and Nuveen Real

Considering the 90-day investment horizon Pgim Global High is expected to generate 1.03 times more return on investment than Nuveen Real. However, Pgim Global is 1.03 times more volatile than Nuveen Real Asset. It trades about 0.21 of its potential returns per unit of risk. Nuveen Real Asset is currently generating about 0.2 per unit of risk. If you would invest  1,222  in Pgim Global High on December 27, 2024 and sell it today you would earn a total of  131.00  from holding Pgim Global High or generate 10.72% return on investment over 90 days.

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

Pgim Global High  vs.  Nuveen Real Asset

Pgim Global High

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Pgim Global High are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly unsteady technical indicators, Pgim Global may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Nuveen Real Asset

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Nuveen Real Asset are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. Despite fairly weak basic indicators, Nuveen Real may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Pgim Global and Nuveen Real

The main advantage of trading using opposite Pgim Global and Nuveen Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pgim Global position performs unexpectedly, Nuveen Real 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 Nuveen Real will offset losses from the drop in Nuveen Real's long position.

The idea behind Pgim Global High and Nuveen Real Asset 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.