Correlation Between Pgim Jennison and Intermediate-term
Can any of the company-specific risk be diversified away by investing in both Pgim Jennison and Intermediate-term 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 Intermediate-term 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 Intermediate Term Tax Free Bond, you can compare the effects of market volatilities on Pgim Jennison and Intermediate-term 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 Intermediate-term. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pgim Jennison and Intermediate-term.
Diversification Opportunities for Pgim Jennison and Intermediate-term
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pgim and Intermediate-term is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Jennison Technology and Intermediate Term Tax Free Bon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intermediate Term Tax 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 Intermediate-term. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intermediate Term Tax has no effect on the direction of Pgim Jennison i.e., Pgim Jennison and Intermediate-term go up and down completely randomly.
Pair Corralation between Pgim Jennison and Intermediate-term
Assuming the 90 days horizon Pgim Jennison Technology is expected to generate 8.1 times more return on investment than Intermediate-term. However, Pgim Jennison is 8.1 times more volatile than Intermediate Term Tax Free Bond. It trades about 0.15 of its potential returns per unit of risk. Intermediate Term Tax Free Bond is currently generating about 0.23 per unit of risk. If you would invest 2,682 in Pgim Jennison Technology on June 8, 2025 and sell it today you would earn a total of 243.00 from holding Pgim Jennison Technology or generate 9.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pgim Jennison Technology vs. Intermediate Term Tax Free Bon
Performance |
| Timeline |
| Pgim Jennison Technology |
| Intermediate Term Tax |
Pgim Jennison and Intermediate-term Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pgim Jennison and Intermediate-term
The main advantage of trading using opposite Pgim Jennison and Intermediate-term positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pgim Jennison position performs unexpectedly, Intermediate-term 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 Intermediate-term will offset losses from the drop in Intermediate-term's long position.| Pgim Jennison vs. Global Technology Portfolio | Pgim Jennison vs. Fidelity Advisor Technology | Pgim Jennison vs. Vanguard Information Technology | Pgim Jennison vs. Red Oak Technology |
| Intermediate-term vs. Mid Cap Value | Intermediate-term vs. Equity Growth Fund | Intermediate-term vs. Income Growth Fund | Intermediate-term vs. Emerging Markets Fund |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |