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 The Emerging Markets, 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
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pgim and Emerging is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Jennison Technology and The Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerging Markets 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 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
Assuming the 90 days horizon Pgim Jennison Technology is expected to generate 1.28 times more return on investment than Emerging Markets. However, Pgim Jennison is 1.28 times more volatile than The Emerging Markets. It trades about 0.17 of its potential returns per unit of risk. The Emerging Markets is currently generating about 0.05 per unit of risk. If you would invest 2,379 in Pgim Jennison Technology on September 15, 2024 and sell it today you would earn a total of 340.00 from holding Pgim Jennison Technology or generate 14.29% 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. The Emerging Markets
Performance |
Timeline |
Pgim Jennison Technology |
Emerging Markets |
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. Tortoise Energy Independence | Pgim Jennison vs. Thrivent Natural Resources | Pgim Jennison vs. Icon Natural Resources | Pgim Jennison vs. Hennessy Bp Energy |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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