Correlation Between PGIM ETF and Collaborative Investment

Can any of the company-specific risk be diversified away by investing in both PGIM ETF and Collaborative Investment 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 ETF and Collaborative Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PGIM ETF Trust and Collaborative Investment Series, you can compare the effects of market volatilities on PGIM ETF and Collaborative Investment 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 ETF with a short position of Collaborative Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of PGIM ETF and Collaborative Investment.

Diversification Opportunities for PGIM ETF and Collaborative Investment

0.0

Correlation Coefficient

PGIM ETF  Collaborative Investment

Pay attention - limited upside

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

Pair Corralation between PGIM ETF and Collaborative Investment

If you would invest  2,148  in Collaborative Investment Series on December 30, 2024 and sell it today you would earn a total of  6.00  from holding Collaborative Investment Series or generate 0.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

PGIM ETF Trust  vs.  Collaborative Investment Serie

PGIM ETF Trust

Risk-Adjusted Performance

Very Weak

Over the last 90 days PGIM ETF Trust has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental drivers, PGIM ETF is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Collaborative Investment

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Collaborative Investment Series are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Collaborative Investment is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with PGIM ETF and Collaborative Investment

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

The idea behind PGIM ETF Trust and Collaborative Investment Series 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.

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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.