Correlation Between Pgim Jennison and Veea

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

By analyzing existing cross correlation between Pgim Jennison International and Veea Inc, you can compare the effects of market volatilities on Pgim Jennison and Veea 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 Veea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pgim Jennison and Veea.

Diversification Opportunities for Pgim Jennison and Veea

0.61

Correlation Coefficient

Pgim Jennison  Veea

Poor diversification

The 3 months correlation between Pgim and Veea is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Jennison International and Veea Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veea Inc 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 International are associated (or correlated) with Veea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Veea Inc has no effect on the direction of Pgim Jennison i.e., Pgim Jennison and Veea go up and down completely randomly.

Pair Corralation between Pgim Jennison and Veea

Assuming the 90 days horizon Pgim Jennison International is expected to under-perform the Veea. But the mutual fund apears to be less risky and, when comparing its historical volatility, Pgim Jennison International is 7.56 times less risky than Veea. The mutual fund trades about -0.07 of its potential returns per unit of risk. The Veea Inc is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  283.00  in Veea Inc on September 28, 2024 and sell it today you would earn a total of  78.00  from holding Veea Inc or generate 27.56% return on investment over 90 days.

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

Pgim Jennison International  vs.  Veea Inc

Pgim Jennison Intern

Risk-Adjusted Performance

0 of 100

Very Weak

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

Veea Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Veea Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's technical and fundamental indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Pgim Jennison and Veea

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

The idea behind Pgim Jennison International and Veea Inc 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.