Correlation Between Mid-cap Value and Pgim Securitized

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

By analyzing existing cross correlation between Mid Cap Value Profund and Pgim Securitized Credit, you can compare the effects of market volatilities on Mid-cap Value and Pgim Securitized 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 Mid-cap Value with a short position of Pgim Securitized. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mid-cap Value and Pgim Securitized.

Diversification Opportunities for Mid-cap Value and Pgim Securitized

0.0

Correlation Coefficient

Mid-cap Value  Pgim Securitized

Pay attention - limited upside

The 3 months correlation between Mid-cap and Pgim is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mid Cap Value Profund and Pgim Securitized Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pgim Securitized Credit and Mid-cap Value 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 Mid Cap Value Profund are associated (or correlated) with Pgim Securitized. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pgim Securitized Credit has no effect on the direction of Mid-cap Value i.e., Mid-cap Value and Pgim Securitized go up and down completely randomly.

Pair Corralation between Mid-cap Value and Pgim Securitized

If you would invest (100.00) in Pgim Securitized Credit on December 21, 2024 and sell it today you would earn a total of  100.00  from holding Pgim Securitized Credit or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Mid Cap Value Profund  vs.  Pgim Securitized Credit

Mid Cap Value

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mid Cap Value Profund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Mid-cap Value is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pgim Securitized Credit

Risk-Adjusted Performance

Good

Over the last 90 days Pgim Securitized Credit has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Pgim Securitized is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Mid-cap Value and Pgim Securitized

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

The idea behind Mid Cap Value Profund and Pgim Securitized Credit 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.