Correlation Between Pgim Jennison and Edward Jones

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

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

Diversification Opportunities for Pgim Jennison and Edward Jones

0.0

Correlation Coefficient

Pgim Jennison  Edward Jones

Pay attention - limited upside

The 3 months correlation between Pgim and Edward is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Jennison Diversified and Edward Jones Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Edward Jones Money 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 Diversified are associated (or correlated) with Edward Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Edward Jones Money has no effect on the direction of Pgim Jennison i.e., Pgim Jennison and Edward Jones go up and down completely randomly.

Pair Corralation between Pgim Jennison and Edward Jones

Assuming the 90 days horizon Pgim Jennison Diversified is expected to generate 10.84 times more return on investment than Edward Jones. However, Pgim Jennison is 10.84 times more volatile than Edward Jones Money. It trades about 0.05 of its potential returns per unit of risk. Edward Jones Money is currently generating about 0.06 per unit of risk. If you would invest  1,661  in Pgim Jennison Diversified on October 6, 2024 and sell it today you would earn a total of  285.00  from holding Pgim Jennison Diversified or generate 17.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.6%
Values	Daily Returns

Pgim Jennison Diversified  vs.  Edward Jones Money

Pgim Jennison Diversified

Risk-Adjusted Performance

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Very Weak

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

Edward Jones Money

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Edward Jones Money has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Edward Jones 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 Edward Jones

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

The idea behind Pgim Jennison Diversified and Edward Jones Money 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.