Correlation Between PGIM Large and PGIM Rock
Can any of the company-specific risk be diversified away by investing in both PGIM Large 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 PGIM Large and PGIM Rock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PGIM Large Cap Buffer and PGIM Rock ETF, you can compare the effects of market volatilities on PGIM Large 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 PGIM Large with a short position of PGIM Rock. Check out your portfolio center. Please also check ongoing floating volatility patterns of PGIM Large and PGIM Rock.
Diversification Opportunities for PGIM Large and PGIM Rock
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between PGIM and PGIM is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding PGIM Large Cap Buffer 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 PGIM 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 PGIM Large Cap Buffer 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 PGIM Large i.e., PGIM Large and PGIM Rock go up and down completely randomly.
Pair Corralation between PGIM Large and PGIM Rock
Given the investment horizon of 90 days PGIM Large is expected to generate 1.58 times less return on investment than PGIM Rock. But when comparing it to its historical volatility, PGIM Large Cap Buffer is 2.09 times less risky than PGIM Rock. It trades about 0.21 of its potential returns per unit of risk. PGIM Rock ETF is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 3,034 in PGIM Rock ETF on July 27, 2025 and sell it today you would earn a total of 108.00 from holding PGIM Rock ETF or generate 3.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
PGIM Large Cap Buffer vs. PGIM Rock ETF
Performance |
| Timeline |
| PGIM Large Cap |
| PGIM Rock ETF |
PGIM Large and PGIM Rock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PGIM Large and PGIM Rock
The main advantage of trading using opposite PGIM Large and PGIM Rock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PGIM Large 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.| PGIM Large vs. FT Vest Equity | PGIM Large vs. Northern Lights | PGIM Large vs. Dimensional International High | PGIM Large vs. JPMorgan Fundamental Data |
| PGIM Rock vs. Listed Funds Trust | PGIM Rock vs. TrueShares Structured Outcome | PGIM Rock vs. TrueShares Structured Outcome | PGIM Rock vs. TrueShares Structured Outcome |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |