Correlation Between Prudential Short and Aim Counselor
Can any of the company-specific risk be diversified away by investing in both Prudential Short and Aim Counselor 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 Prudential Short and Aim Counselor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prudential Short Duration and Aim Counselor Series, you can compare the effects of market volatilities on Prudential Short and Aim Counselor 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 Prudential Short with a short position of Aim Counselor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prudential Short and Aim Counselor.
Diversification Opportunities for Prudential Short and Aim Counselor
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Prudential and Aim is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Prudential Short Duration and Aim Counselor Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aim Counselor Series and Prudential Short 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 Prudential Short Duration are associated (or correlated) with Aim Counselor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aim Counselor Series has no effect on the direction of Prudential Short i.e., Prudential Short and Aim Counselor go up and down completely randomly.
Pair Corralation between Prudential Short and Aim Counselor
Assuming the 90 days horizon Prudential Short is expected to generate 17.11 times less return on investment than Aim Counselor. But when comparing it to its historical volatility, Prudential Short Duration is 1.44 times less risky than Aim Counselor. It trades about 0.01 of its potential returns per unit of risk. Aim Counselor Series is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,004 in Aim Counselor Series on September 3, 2025 and sell it today you would earn a total of 21.00 from holding Aim Counselor Series or generate 2.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prudential Short Duration vs. Aim Counselor Series
Performance |
| Timeline |
| Prudential Short Duration |
| Aim Counselor Series |
Prudential Short and Aim Counselor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prudential Short and Aim Counselor
The main advantage of trading using opposite Prudential Short and Aim Counselor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prudential Short position performs unexpectedly, Aim Counselor 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 Aim Counselor will offset losses from the drop in Aim Counselor's long position.| Prudential Short vs. The Hartford Growth | Prudential Short vs. Enhanced Large Pany | Prudential Short vs. Calvert Moderate Allocation | Prudential Short vs. Qs Large Cap |
| Aim Counselor vs. Mondrian Emerging Markets | Aim Counselor vs. Abs Insights Emerging | Aim Counselor vs. Martin Currie Emerging | Aim Counselor vs. Gmo Emerging Ntry |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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