Correlation Between Pgim Jennison and Abr 75/25

Can any of the company-specific risk be diversified away by investing in both Pgim Jennison and Abr 75/25 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 Abr 75/25 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 Abr 7525 Volatility, you can compare the effects of market volatilities on Pgim Jennison and Abr 75/25 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 Abr 75/25. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pgim Jennison and Abr 75/25.

Diversification Opportunities for Pgim Jennison and Abr 75/25

-0.23

Correlation Coefficient

Pgim Jennison  Abr 75/25

Very good diversification

The 3 months correlation between Pgim and Abr is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Jennison International and Abr 7525 Volatility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abr 7525 Volatility 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 Abr 75/25. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abr 7525 Volatility has no effect on the direction of Pgim Jennison i.e., Pgim Jennison and Abr 75/25 go up and down completely randomly.

Pair Corralation between Pgim Jennison and Abr 75/25

Assuming the 90 days horizon Pgim Jennison International is expected to under-perform the Abr 75/25. But the mutual fund apears to be less risky and, when comparing its historical volatility, Pgim Jennison International is 1.31 times less risky than Abr 75/25. The mutual fund trades about -0.09 of its potential returns per unit of risk. The Abr 7525 Volatility is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  1,044  in Abr 7525 Volatility on October 5, 2024 and sell it today you would earn a total of  20.00  from holding Abr 7525 Volatility or generate 1.92% return on investment over 90 days.

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

Pgim Jennison International  vs.  Abr 7525 Volatility

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.

Abr 7525 Volatility

Risk-Adjusted Performance

2 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Abr 7525 Volatility are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward-looking indicators, Abr 75/25 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 Abr 75/25

The main advantage of trading using opposite Pgim Jennison and Abr 75/25 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pgim Jennison position performs unexpectedly, Abr 75/25 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 Abr 75/25 will offset losses from the drop in Abr 75/25's long position.

The idea behind Pgim Jennison International and Abr 7525 Volatility 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.