Correlation Between Prudential Jennison and Tfa Alphagen
Can any of the company-specific risk be diversified away by investing in both Prudential Jennison and Tfa Alphagen 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 Jennison and Tfa Alphagen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prudential Jennison Blend and Tfa Alphagen Growth, you can compare the effects of market volatilities on Prudential Jennison and Tfa Alphagen 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 Jennison with a short position of Tfa Alphagen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prudential Jennison and Tfa Alphagen.
Diversification Opportunities for Prudential Jennison and Tfa Alphagen
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Prudential and Tfa is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Prudential Jennison Blend and Tfa Alphagen Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tfa Alphagen Growth and Prudential Jennison 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 Jennison Blend are associated (or correlated) with Tfa Alphagen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tfa Alphagen Growth has no effect on the direction of Prudential Jennison i.e., Prudential Jennison and Tfa Alphagen go up and down completely randomly.
Pair Corralation between Prudential Jennison and Tfa Alphagen
Assuming the 90 days horizon Prudential Jennison is expected to generate 1.22 times less return on investment than Tfa Alphagen. But when comparing it to its historical volatility, Prudential Jennison Blend is 1.07 times less risky than Tfa Alphagen. It trades about 0.16 of its potential returns per unit of risk. Tfa Alphagen Growth is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,119 in Tfa Alphagen Growth on June 10, 2025 and sell it today you would earn a total of 98.00 from holding Tfa Alphagen Growth or generate 8.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prudential Jennison Blend vs. Tfa Alphagen Growth
Performance |
| Timeline |
| Prudential Jennison Blend |
| Tfa Alphagen Growth |
Prudential Jennison and Tfa Alphagen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prudential Jennison and Tfa Alphagen
The main advantage of trading using opposite Prudential Jennison and Tfa Alphagen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prudential Jennison position performs unexpectedly, Tfa Alphagen 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 Tfa Alphagen will offset losses from the drop in Tfa Alphagen's long position.| Prudential Jennison vs. Inflation Adjusted Bond Fund | Prudential Jennison vs. Ab Municipal Bond | Prudential Jennison vs. Ab Bond Inflation | Prudential Jennison vs. Ab Municipal Bond |
| Tfa Alphagen vs. Tactical Growth Allocation | Tfa Alphagen vs. Tfa Quantitative | Tfa Alphagen vs. Tfa Tactical Income | Tfa Alphagen vs. Johcm Emerging Markets |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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