Correlation Between Pgim Jennison and Blackrock Developed

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

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

Diversification Opportunities for Pgim Jennison and Blackrock Developed

-0.15

Correlation Coefficient

Pgim Jennison  Blackrock Developed

Good diversification

The 3 months correlation between Pgim and Blackrock is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Jennison Technology and Blackrock Developed Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Developed Real and Pgim Jennison 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 Jennison Technology are associated (or correlated) with Blackrock Developed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Developed Real has no effect on the direction of Pgim Jennison i.e., Pgim Jennison and Blackrock Developed go up and down completely randomly.

Pair Corralation between Pgim Jennison and Blackrock Developed

Assuming the 90 days horizon Pgim Jennison Technology is expected to under-perform the Blackrock Developed. In addition to that, Pgim Jennison is 2.29 times more volatile than Blackrock Developed Real. It trades about -0.11 of its total potential returns per unit of risk. Blackrock Developed Real is currently generating about 0.05 per unit of volatility. If you would invest  788.00  in Blackrock Developed Real on December 21, 2024 and sell it today you would earn a total of  20.00  from holding Blackrock Developed Real or generate 2.54% return on investment over 90 days.

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

Pgim Jennison Technology  vs.  Blackrock Developed Real

Pgim Jennison Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pgim Jennison Technology has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's fundamental indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Blackrock Developed Real

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Blackrock Developed Real are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Blackrock Developed 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 Jennison and Blackrock Developed

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

The idea behind Pgim Jennison Technology and Blackrock Developed Real 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.