Correlation Between Pgim Jennison and Dfa Mn
Can any of the company-specific risk be diversified away by investing in both Pgim Jennison and Dfa Mn 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 Mn 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 Mn Municipal, you can compare the effects of market volatilities on Pgim Jennison and Dfa Mn 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 Mn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pgim Jennison and Dfa Mn.
Diversification Opportunities for Pgim Jennison and Dfa Mn
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Pgim and Dfa is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Jennison Technology and Dfa Mn Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dfa Mn Municipal 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 Mn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dfa Mn Municipal has no effect on the direction of Pgim Jennison i.e., Pgim Jennison and Dfa Mn go up and down completely randomly.
Pair Corralation between Pgim Jennison and Dfa Mn
Assuming the 90 days horizon Pgim Jennison Technology is expected to generate 20.76 times more return on investment than Dfa Mn. However, Pgim Jennison is 20.76 times more volatile than Dfa Mn Municipal. It trades about 0.14 of its potential returns per unit of risk. Dfa Mn Municipal is currently generating about 0.28 per unit of risk. If you would invest 2,520 in Pgim Jennison Technology on June 5, 2025 and sell it today you would earn a total of 203.00 from holding Pgim Jennison Technology or generate 8.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pgim Jennison Technology vs. Dfa Mn Municipal
Performance |
| Timeline |
| Pgim Jennison Technology |
| Dfa Mn Municipal |
Pgim Jennison and Dfa Mn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pgim Jennison and Dfa Mn
The main advantage of trading using opposite Pgim Jennison and Dfa Mn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pgim Jennison position performs unexpectedly, Dfa Mn 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 Mn will offset losses from the drop in Dfa Mn's long position.| Pgim Jennison vs. Yuanbao American Depositary | Pgim Jennison vs. Viewbix Common Stock | Pgim Jennison vs. Datavault AI | Pgim Jennison vs. VivoPower International PLC |
| Dfa Mn vs. Blackrock Science Technology | Dfa Mn vs. Pgim Jennison Technology | Dfa Mn vs. Blackrock Science Technology | Dfa Mn vs. Janus Global Technology |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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