Correlation Between Pgim Jennison and Us Government
Can any of the company-specific risk be diversified away by investing in both Pgim Jennison and Us Government 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 Us Government 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 Us Government Securities, you can compare the effects of market volatilities on Pgim Jennison and Us Government 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 Us Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pgim Jennison and Us Government.
Diversification Opportunities for Pgim Jennison and Us Government
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pgim and UGSDX is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Jennison Technology and Us Government Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Us Government Securities 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 Us Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Us Government Securities has no effect on the direction of Pgim Jennison i.e., Pgim Jennison and Us Government go up and down completely randomly.
Pair Corralation between Pgim Jennison and Us Government
Assuming the 90 days horizon Pgim Jennison Technology is expected to generate 10.18 times more return on investment than Us Government. However, Pgim Jennison is 10.18 times more volatile than Us Government Securities. It trades about 0.16 of its potential returns per unit of risk. Us Government Securities is currently generating about 0.18 per unit of risk. If you would invest 2,473 in Pgim Jennison Technology on May 27, 2025 and sell it today you would earn a total of 231.00 from holding Pgim Jennison Technology or generate 9.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pgim Jennison Technology vs. Us Government Securities
Performance |
| Timeline |
| Pgim Jennison Technology |
| Us Government Securities |
Pgim Jennison and Us Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pgim Jennison and Us Government
The main advantage of trading using opposite Pgim Jennison and Us Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pgim Jennison position performs unexpectedly, Us Government 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 Us Government will offset losses from the drop in Us Government's long position.| Pgim Jennison vs. Transamerica International Small | Pgim Jennison vs. Foundry Partners Fundamental | Pgim Jennison vs. Qs Small Capitalization | Pgim Jennison vs. Sp Smallcap 600 |
| Us Government vs. American Century Etf | Us Government vs. Goldman Sachs Small | Us Government vs. Heartland Value Plus | Us Government vs. Lord Abbett Small |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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