Correlation Between Fulcrum Diversified and Pgim Jennison

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Can any of the company-specific risk be diversified away by investing in both Fulcrum Diversified 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 Fulcrum Diversified and Pgim Jennison into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fulcrum Diversified Absolute and Pgim Jennison International, you can compare the effects of market volatilities on Fulcrum Diversified 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 Fulcrum Diversified with a short position of Pgim Jennison. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fulcrum Diversified and Pgim Jennison.

Diversification Opportunities for Fulcrum Diversified and Pgim Jennison

0.67
  Correlation Coefficient

Poor diversification

The 3 months correlation between Fulcrum and Pgim is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Fulcrum Diversified Absolute and Pgim Jennison International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pgim Jennison Intern and Fulcrum Diversified 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 Fulcrum Diversified Absolute 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 Intern has no effect on the direction of Fulcrum Diversified i.e., Fulcrum Diversified and Pgim Jennison go up and down completely randomly.

Pair Corralation between Fulcrum Diversified and Pgim Jennison

Assuming the 90 days horizon Fulcrum Diversified Absolute is expected to generate 0.46 times more return on investment than Pgim Jennison. However, Fulcrum Diversified Absolute is 2.15 times less risky than Pgim Jennison. It trades about 0.21 of its potential returns per unit of risk. Pgim Jennison International is currently generating about 0.0 per unit of risk. If you would invest  983.00  in Fulcrum Diversified Absolute on August 16, 2025 and sell it today you would earn a total of  58.00  from holding Fulcrum Diversified Absolute or generate 5.9% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy98.44%
ValuesDaily Returns

Fulcrum Diversified Absolute  vs.  Pgim Jennison International

 Performance 
       Timeline  
Fulcrum Diversified 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Fulcrum Diversified Absolute are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Fulcrum Diversified is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Pgim Jennison Intern 

Risk-Adjusted Performance

Weakest

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

Fulcrum Diversified and Pgim Jennison Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Fulcrum Diversified and Pgim Jennison

The main advantage of trading using opposite Fulcrum Diversified and Pgim Jennison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fulcrum Diversified 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 Fulcrum Diversified Absolute and Pgim Jennison International 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

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