Correlation Between Dana Large and Prudential Financial
Can any of the company-specific risk be diversified away by investing in both Dana Large and Prudential Financial 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 Dana Large and Prudential Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dana Large Cap and Prudential Financial Services, you can compare the effects of market volatilities on Dana Large and Prudential Financial 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 Dana Large with a short position of Prudential Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dana Large and Prudential Financial.
Diversification Opportunities for Dana Large and Prudential Financial
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dana and Prudential is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Dana Large Cap and Prudential Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prudential Financial and Dana Large 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 Dana Large Cap are associated (or correlated) with Prudential Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prudential Financial has no effect on the direction of Dana Large i.e., Dana Large and Prudential Financial go up and down completely randomly.
Pair Corralation between Dana Large and Prudential Financial
Assuming the 90 days horizon Dana Large Cap is expected to generate 0.79 times more return on investment than Prudential Financial. However, Dana Large Cap is 1.27 times less risky than Prudential Financial. It trades about 0.14 of its potential returns per unit of risk. Prudential Financial Services is currently generating about 0.01 per unit of risk. If you would invest 2,390 in Dana Large Cap on September 5, 2025 and sell it today you would earn a total of 160.00 from holding Dana Large Cap or generate 6.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dana Large Cap vs. Prudential Financial Services
Performance |
| Timeline |
| Dana Large Cap |
| Prudential Financial |
Dana Large and Prudential Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dana Large and Prudential Financial
The main advantage of trading using opposite Dana Large and Prudential Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dana Large position performs unexpectedly, Prudential Financial 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 Financial will offset losses from the drop in Prudential Financial's long position.| Dana Large vs. Praxis Impact Bond | Dana Large vs. Nuveen High Yield | Dana Large vs. Morningstar Defensive Bond | Dana Large vs. Gmo High Yield |
| Prudential Financial vs. Qs Large Cap | Prudential Financial vs. Dana Large Cap | Prudential Financial vs. Dunham Large Cap | Prudential Financial vs. Siit Large Cap |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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