Correlation Between High Yield and Prudential Emerging
Can any of the company-specific risk be diversified away by investing in both High Yield and Prudential Emerging 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 High Yield and Prudential Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between High Yield Municipal Fund and Prudential Emerging Markets, you can compare the effects of market volatilities on High Yield and Prudential Emerging 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 High Yield with a short position of Prudential Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Yield and Prudential Emerging.
Diversification Opportunities for High Yield and Prudential Emerging
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between High and Prudential is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding High Yield Municipal Fund and Prudential Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prudential Emerging and High Yield 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 High Yield Municipal Fund are associated (or correlated) with Prudential Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prudential Emerging has no effect on the direction of High Yield i.e., High Yield and Prudential Emerging go up and down completely randomly.
Pair Corralation between High Yield and Prudential Emerging
If you would invest 488.00 in Prudential Emerging Markets on September 10, 2025 and sell it today you would earn a total of 7.00 from holding Prudential Emerging Markets or generate 1.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
High Yield Municipal Fund vs. Prudential Emerging Markets
Performance |
| Timeline |
| High Yield Municipal |
Risk-Adjusted Performance
Good
Weak | Strong |
| Prudential Emerging |
High Yield and Prudential Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High Yield and Prudential Emerging
The main advantage of trading using opposite High Yield and Prudential Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Yield position performs unexpectedly, Prudential Emerging 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 Prudential Emerging will offset losses from the drop in Prudential Emerging's long position.| High Yield vs. Tiaa Cref Lifestyle Moderate | High Yield vs. College Retirement Equities | High Yield vs. Sa Worldwide Moderate | High Yield vs. Dimensional Retirement Income |
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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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