Correlation Between AB Active and PGIM Nasdaq
Can any of the company-specific risk be diversified away by investing in both AB Active and PGIM Nasdaq 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 AB Active and PGIM Nasdaq into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AB Active ETFs and PGIM Nasdaq 100 Buffer, you can compare the effects of market volatilities on AB Active and PGIM Nasdaq 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 AB Active with a short position of PGIM Nasdaq. Check out your portfolio center. Please also check ongoing floating volatility patterns of AB Active and PGIM Nasdaq.
Diversification Opportunities for AB Active and PGIM Nasdaq
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between IGGY and PGIM is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding AB Active ETFs and PGIM Nasdaq 100 Buffer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PGIM Nasdaq 100 and AB Active 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 AB Active ETFs are associated (or correlated) with PGIM Nasdaq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PGIM Nasdaq 100 has no effect on the direction of AB Active i.e., AB Active and PGIM Nasdaq go up and down completely randomly.
Pair Corralation between AB Active and PGIM Nasdaq
Given the investment horizon of 90 days AB Active ETFs is expected to under-perform the PGIM Nasdaq. In addition to that, AB Active is 1.87 times more volatile than PGIM Nasdaq 100 Buffer. It trades about -0.05 of its total potential returns per unit of risk. PGIM Nasdaq 100 Buffer is currently generating about 0.07 per unit of volatility. If you would invest 2,835 in PGIM Nasdaq 100 Buffer on October 7, 2025 and sell it today you would earn a total of 62.80 from holding PGIM Nasdaq 100 Buffer or generate 2.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
AB Active ETFs vs. PGIM Nasdaq 100 Buffer
Performance |
| Timeline |
| AB Active ETFs |
| PGIM Nasdaq 100 |
AB Active and PGIM Nasdaq Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AB Active and PGIM Nasdaq
The main advantage of trading using opposite AB Active and PGIM Nasdaq positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AB Active position performs unexpectedly, PGIM Nasdaq 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 Nasdaq will offset losses from the drop in PGIM Nasdaq's long position.| AB Active vs. Direxion All Cap | AB Active vs. PGIM Nasdaq 100 Buffer | AB Active vs. VanEck Consumer Discretionary | AB Active vs. First Trust Exchange Traded |
| PGIM Nasdaq vs. PGIM Nasdaq 100 Buffer | PGIM Nasdaq vs. PGIM Nasdaq 100 Buffer | PGIM Nasdaq vs. KraneShares Trust | PGIM Nasdaq vs. AB Active ETFs |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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