Correlation Between Pimco Emerging and Prudential Emerging
Can any of the company-specific risk be diversified away by investing in both Pimco Emerging and Prudential Emerging 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 Pimco Emerging and Prudential Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Emerging Markets and Prudential Emerging Markets, you can compare the effects of market volatilities on Pimco Emerging and Prudential Emerging 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 Pimco Emerging with a short position of Prudential Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Emerging and Prudential Emerging.
Diversification Opportunities for Pimco Emerging and Prudential Emerging
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Pimco and Prudential is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Emerging Markets and Prudential Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prudential Emerging and Pimco Emerging 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 Pimco Emerging Markets are associated (or correlated) with Prudential Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prudential Emerging has no effect on the direction of Pimco Emerging i.e., Pimco Emerging and Prudential Emerging go up and down completely randomly.
Pair Corralation between Pimco Emerging and Prudential Emerging
Assuming the 90 days horizon Pimco Emerging is expected to generate 1.1 times less return on investment than Prudential Emerging. In addition to that, Pimco Emerging is 1.04 times more volatile than Prudential Emerging Markets. It trades about 0.26 of its total potential returns per unit of risk. Prudential Emerging Markets is currently generating about 0.3 per unit of volatility. If you would invest 456.00 in Prudential Emerging Markets on April 23, 2025 and sell it today you would earn a total of 29.00 from holding Prudential Emerging Markets or generate 6.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.39% |
| Values | Daily Returns |
Pimco Emerging Markets vs. Prudential Emerging Markets
Performance |
| Timeline |
| Pimco Emerging Markets |
| Prudential Emerging |
Pimco Emerging and Prudential Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Emerging and Prudential Emerging
The main advantage of trading using opposite Pimco Emerging and Prudential Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Emerging position performs unexpectedly, Prudential Emerging 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 Prudential Emerging will offset losses from the drop in Prudential Emerging's long position.| Pimco Emerging vs. Ab Bond Inflation | Pimco Emerging vs. Ab Bond Inflation | Pimco Emerging vs. Morningstar Defensive Bond | Pimco Emerging vs. Bts Tactical Fixed |
| Prudential Emerging vs. Gold And Precious | Prudential Emerging vs. Europac Gold Fund | Prudential Emerging vs. Franklin Gold Precious | Prudential Emerging vs. Deutsche Gold Precious |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |