Correlation Between Prudential Financial and Expand Energy
Can any of the company-specific risk be diversified away by investing in both Prudential Financial and Expand Energy 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 Financial and Expand Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prudential Financial 4125 and Expand Energy, you can compare the effects of market volatilities on Prudential Financial and Expand Energy 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 Financial with a short position of Expand Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prudential Financial and Expand Energy.
Diversification Opportunities for Prudential Financial and Expand Energy
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Prudential and Expand is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Prudential Financial 4125 and Expand Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expand Energy and Prudential Financial 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 Financial 4125 are associated (or correlated) with Expand Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expand Energy has no effect on the direction of Prudential Financial i.e., Prudential Financial and Expand Energy go up and down completely randomly.
Pair Corralation between Prudential Financial and Expand Energy
Considering the 90-day investment horizon Prudential Financial 4125 is expected to generate 0.36 times more return on investment than Expand Energy. However, Prudential Financial 4125 is 2.74 times less risky than Expand Energy. It trades about 0.09 of its potential returns per unit of risk. Expand Energy is currently generating about -0.11 per unit of risk. If you would invest 1,726 in Prudential Financial 4125 on June 4, 2025 and sell it today you would earn a total of 47.00 from holding Prudential Financial 4125 or generate 2.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prudential Financial 4125 vs. Expand Energy
Performance |
| Timeline |
| Prudential Financial 4125 |
| Expand Energy |
Prudential Financial and Expand Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prudential Financial and Expand Energy
The main advantage of trading using opposite Prudential Financial and Expand Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prudential Financial position performs unexpectedly, Expand Energy 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 Expand Energy will offset losses from the drop in Expand Energy's long position.| Prudential Financial vs. Southern Company Series | Prudential Financial vs. Credit Enhanced Corts | Prudential Financial vs. Structured Products Corp | Prudential Financial vs. Affiliated Managers Group |
| Expand Energy vs. Virtus Investment Partners, | Expand Energy vs. Decent Holding Ordinary | Expand Energy vs. Radcom | Expand Energy vs. Artisan Partners Asset |
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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