Correlation Between Pgim Esg and Gamco Global

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

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

Diversification Opportunities for Pgim Esg and Gamco Global

-0.27

Correlation Coefficient

Pgim Esg  Gamco Global

Very good diversification

The 3 months correlation between Pgim and Gamco is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Esg High and Gamco Global Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamco Global Gold and Pgim Esg 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 Esg High are associated (or correlated) with Gamco Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamco Global Gold has no effect on the direction of Pgim Esg i.e., Pgim Esg and Gamco Global go up and down completely randomly.

Pair Corralation between Pgim Esg and Gamco Global

Assuming the 90 days horizon Pgim Esg High is expected to generate 0.35 times more return on investment than Gamco Global. However, Pgim Esg High is 2.84 times less risky than Gamco Global. It trades about 0.16 of its potential returns per unit of risk. Gamco Global Gold is currently generating about 0.04 per unit of risk. If you would invest  847.00  in Pgim Esg High on September 14, 2024 and sell it today you would earn a total of  48.00  from holding Pgim Esg High or generate 5.67% return on investment over 90 days.

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

Pgim Esg High  vs.  Gamco Global Gold

Pgim Esg High

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Pgim Esg High are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Pgim Esg is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Gamco Global Gold

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Pgim Esg and Gamco Global

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

The idea behind Pgim Esg High and Gamco Global Gold 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.