Correlation Between Xtrackers National and PGIM Rock
Can any of the company-specific risk be diversified away by investing in both Xtrackers National and PGIM Rock 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 Xtrackers National and PGIM Rock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers National Critical and PGIM Rock ETF, you can compare the effects of market volatilities on Xtrackers National and PGIM Rock 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 Xtrackers National with a short position of PGIM Rock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers National and PGIM Rock.
Diversification Opportunities for Xtrackers National and PGIM Rock
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xtrackers and PGIM is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers National Critical and PGIM Rock ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PGIM Rock ETF and Xtrackers National 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 Xtrackers National Critical are associated (or correlated) with PGIM Rock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PGIM Rock ETF has no effect on the direction of Xtrackers National i.e., Xtrackers National and PGIM Rock go up and down completely randomly.
Pair Corralation between Xtrackers National and PGIM Rock
Given the investment horizon of 90 days Xtrackers National Critical is expected to under-perform the PGIM Rock. In addition to that, Xtrackers National is 8.47 times more volatile than PGIM Rock ETF. It trades about -0.12 of its total potential returns per unit of risk. PGIM Rock ETF is currently generating about 0.11 per unit of volatility. If you would invest 2,588 in PGIM Rock ETF on September 4, 2025 and sell it today you would earn a total of 7.00 from holding PGIM Rock ETF or generate 0.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtrackers National Critical vs. PGIM Rock ETF
Performance |
| Timeline |
| Xtrackers National |
| PGIM Rock ETF |
Xtrackers National and PGIM Rock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers National and PGIM Rock
The main advantage of trading using opposite Xtrackers National and PGIM Rock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers National position performs unexpectedly, PGIM Rock 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 Rock will offset losses from the drop in PGIM Rock's long position.| Xtrackers National vs. Strategy Shares | Xtrackers National vs. Freedom Day Dividend | Xtrackers National vs. Franklin Templeton ETF | Xtrackers National vs. iShares MSCI China |
| PGIM Rock vs. FT Vest Equity | PGIM Rock vs. Northern Lights | PGIM Rock vs. Diamond Hill Funds | PGIM Rock vs. Dimensional International High |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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