Correlation Between Georgia Tax-free and Pgim Jennison

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Georgia Tax-free and Pgim Jennison 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 Georgia Tax-free and Pgim Jennison into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Georgia Tax Free Bond and Pgim Jennison Technology, you can compare the effects of market volatilities on Georgia Tax-free and Pgim Jennison 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 Georgia Tax-free with a short position of Pgim Jennison. Check out your portfolio center. Please also check ongoing floating volatility patterns of Georgia Tax-free and Pgim Jennison.

Diversification Opportunities for Georgia Tax-free and Pgim Jennison

0.3
  Correlation Coefficient

Weak diversification

The 3 months correlation between Georgia and Pgim is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Georgia Tax Free Bond and Pgim Jennison Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pgim Jennison Technology and Georgia Tax-free 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 Georgia Tax Free Bond are associated (or correlated) with Pgim Jennison. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pgim Jennison Technology has no effect on the direction of Georgia Tax-free i.e., Georgia Tax-free and Pgim Jennison go up and down completely randomly.

Pair Corralation between Georgia Tax-free and Pgim Jennison

Assuming the 90 days horizon Georgia Tax-free is expected to generate 13.33 times less return on investment than Pgim Jennison. But when comparing it to its historical volatility, Georgia Tax Free Bond is 5.94 times less risky than Pgim Jennison. It trades about 0.05 of its potential returns per unit of risk. Pgim Jennison Technology is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  1,251  in Pgim Jennison Technology on October 11, 2024 and sell it today you would earn a total of  1,394  from holding Pgim Jennison Technology or generate 111.43% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Georgia Tax Free Bond  vs.  Pgim Jennison Technology

 Performance 
       Timeline  
Georgia Tax Free 

Risk-Adjusted Performance

0 of 100

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

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Pgim Jennison Technology are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Pgim Jennison is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Georgia Tax-free and Pgim Jennison Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Georgia Tax-free and Pgim Jennison

The main advantage of trading using opposite Georgia Tax-free and Pgim Jennison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Georgia Tax-free position performs unexpectedly, Pgim Jennison 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 Pgim Jennison will offset losses from the drop in Pgim Jennison's long position.
The idea behind Georgia Tax Free Bond and Pgim Jennison Technology 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.
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.

Other Complementary Tools

Share Portfolio
Track or share privately all of your investments from the convenience of any device
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Transaction History
View history of all your transactions and understand their impact on performance
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.