Correlation Between Pgim Jennison and Dfa Ltip
Can any of the company-specific risk be diversified away by investing in both Pgim Jennison and Dfa Ltip 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 Jennison and Dfa Ltip into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pgim Jennison Technology and Dfa Ltip Portfolio, you can compare the effects of market volatilities on Pgim Jennison and Dfa Ltip 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 Jennison with a short position of Dfa Ltip. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pgim Jennison and Dfa Ltip.
Diversification Opportunities for Pgim Jennison and Dfa Ltip
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pgim and Dfa is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Jennison Technology and Dfa Ltip Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dfa Ltip Portfolio and Pgim 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 Pgim Jennison Technology are associated (or correlated) with Dfa Ltip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dfa Ltip Portfolio has no effect on the direction of Pgim Jennison i.e., Pgim Jennison and Dfa Ltip go up and down completely randomly.
Pair Corralation between Pgim Jennison and Dfa Ltip
Assuming the 90 days horizon Pgim Jennison Technology is expected to generate 4.56 times more return on investment than Dfa Ltip. However, Pgim Jennison is 4.56 times more volatile than Dfa Ltip Portfolio. It trades about 0.11 of its potential returns per unit of risk. Dfa Ltip Portfolio is currently generating about -0.1 per unit of risk. If you would invest 2,833 in Pgim Jennison Technology on October 6, 2025 and sell it today you would earn a total of 121.00 from holding Pgim Jennison Technology or generate 4.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pgim Jennison Technology vs. Dfa Ltip Portfolio
Performance |
| Timeline |
| Pgim Jennison Technology |
| Dfa Ltip Portfolio |
Pgim Jennison and Dfa Ltip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pgim Jennison and Dfa Ltip
The main advantage of trading using opposite Pgim Jennison and Dfa Ltip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pgim Jennison position performs unexpectedly, Dfa Ltip 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 Dfa Ltip will offset losses from the drop in Dfa Ltip's long position.| Pgim Jennison vs. Baron Health Care | Pgim Jennison vs. Alger Health Sciences | Pgim Jennison vs. Vanguard Health Care | Pgim Jennison vs. Allianzgi Health Sciences |
| Dfa Ltip vs. Ridgeworth Seix Government | Dfa Ltip vs. Blackrock Government Bond | Dfa Ltip vs. Davis Government Bond | Dfa Ltip vs. Wells Fargo Government |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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