Correlation Between PGIM Ultra and SPDR Portfolio
Can any of the company-specific risk be diversified away by investing in both PGIM Ultra and SPDR Portfolio 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 Ultra and SPDR Portfolio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PGIM Ultra Short and SPDR Portfolio Emerging, you can compare the effects of market volatilities on PGIM Ultra and SPDR Portfolio 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 Ultra with a short position of SPDR Portfolio. Check out your portfolio center. Please also check ongoing floating volatility patterns of PGIM Ultra and SPDR Portfolio.
Diversification Opportunities for PGIM Ultra and SPDR Portfolio
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between PGIM and SPDR is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding PGIM Ultra Short and SPDR Portfolio Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Portfolio Emerging and PGIM Ultra 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 Ultra Short are associated (or correlated) with SPDR Portfolio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Portfolio Emerging has no effect on the direction of PGIM Ultra i.e., PGIM Ultra and SPDR Portfolio go up and down completely randomly.
Pair Corralation between PGIM Ultra and SPDR Portfolio
Given the investment horizon of 90 days PGIM Ultra is expected to generate 5.96 times less return on investment than SPDR Portfolio. But when comparing it to its historical volatility, PGIM Ultra Short is 33.93 times less risky than SPDR Portfolio. It trades about 0.72 of its potential returns per unit of risk. SPDR Portfolio Emerging is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 4,470 in SPDR Portfolio Emerging on August 13, 2025 and sell it today you would earn a total of 312.00 from holding SPDR Portfolio Emerging or generate 6.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
PGIM Ultra Short vs. SPDR Portfolio Emerging
Performance |
| Timeline |
| PGIM Ultra Short |
| SPDR Portfolio Emerging |
PGIM Ultra and SPDR Portfolio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PGIM Ultra and SPDR Portfolio
The main advantage of trading using opposite PGIM Ultra and SPDR Portfolio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PGIM Ultra position performs unexpectedly, SPDR Portfolio 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 SPDR Portfolio will offset losses from the drop in SPDR Portfolio's long position.| PGIM Ultra vs. BlackRock ETF Trust | PGIM Ultra vs. Avantis International Small | PGIM Ultra vs. iShares 0 5 Year | PGIM Ultra vs. Dimensional Marketwide Value |
| SPDR Portfolio vs. SPDR Russell Small | SPDR Portfolio vs. Vanguard Financials Index | SPDR Portfolio vs. iShares Russell 2000 | SPDR Portfolio vs. Goldman Sachs ActiveBeta |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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