Correlation Between Pgim Jennison and Emerging Markets
Can any of the company-specific risk be diversified away by investing in both Pgim Jennison and Emerging Markets 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 Emerging Markets 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 Emerging Markets Leaders, you can compare the effects of market volatilities on Pgim Jennison and Emerging Markets 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 Emerging Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pgim Jennison and Emerging Markets.
Diversification Opportunities for Pgim Jennison and Emerging Markets
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pgim and Emerging is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Jennison Technology and Emerging Markets Leaders in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerging Markets Leaders 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 Emerging Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerging Markets Leaders has no effect on the direction of Pgim Jennison i.e., Pgim Jennison and Emerging Markets go up and down completely randomly.
Pair Corralation between Pgim Jennison and Emerging Markets
If you would invest 2,379 in Pgim Jennison Technology on September 14, 2024 and sell it today you would earn a total of 309.00 from holding Pgim Jennison Technology or generate 12.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 1.59% |
Values | Daily Returns |
Pgim Jennison Technology vs. Emerging Markets Leaders
Performance |
Timeline |
Pgim Jennison Technology |
Emerging Markets Leaders |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Pgim Jennison and Emerging Markets Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pgim Jennison and Emerging Markets
The main advantage of trading using opposite Pgim Jennison and Emerging Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pgim Jennison position performs unexpectedly, Emerging Markets 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 Emerging Markets will offset losses from the drop in Emerging Markets' long position.Pgim Jennison vs. Western Asset Municipal | Pgim Jennison vs. Scharf Global Opportunity | Pgim Jennison vs. Ab Value Fund | Pgim Jennison vs. Balanced Fund Investor |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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