Correlation Between Sit Government and Pgim Jennison
Can any of the company-specific risk be diversified away by investing in both Sit Government and Pgim Jennison 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 Sit Government and Pgim Jennison into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sit Government Securities and Pgim Jennison Diversified, you can compare the effects of market volatilities on Sit Government and Pgim Jennison 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 Sit Government with a short position of Pgim Jennison. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sit Government and Pgim Jennison.
Diversification Opportunities for Sit Government and Pgim Jennison
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sit and Pgim is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Sit Government Securities and Pgim Jennison Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pgim Jennison Diversified and Sit Government 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 Sit Government Securities are associated (or correlated) with Pgim Jennison. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pgim Jennison Diversified has no effect on the direction of Sit Government i.e., Sit Government and Pgim Jennison go up and down completely randomly.
Pair Corralation between Sit Government and Pgim Jennison
Assuming the 90 days horizon Sit Government Securities is expected to under-perform the Pgim Jennison. But the mutual fund apears to be less risky and, when comparing its historical volatility, Sit Government Securities is 3.2 times less risky than Pgim Jennison. The mutual fund trades about -0.05 of its potential returns per unit of risk. The Pgim Jennison Diversified is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,061 in Pgim Jennison Diversified on April 30, 2025 and sell it today you would earn a total of 40.00 from holding Pgim Jennison Diversified or generate 1.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Sit Government Securities vs. Pgim Jennison Diversified
Performance |
| Timeline |
| Sit Government Securities |
| Pgim Jennison Diversified |
Sit Government and Pgim Jennison Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sit Government and Pgim Jennison
The main advantage of trading using opposite Sit Government and Pgim Jennison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sit Government position performs unexpectedly, Pgim Jennison 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 Pgim Jennison will offset losses from the drop in Pgim Jennison's long position.| Sit Government vs. Target Retirement 2040 | Sit Government vs. Dimensional Retirement Income | Sit Government vs. Voya Target Retirement | Sit Government vs. Moderately Aggressive Balanced |
| Pgim Jennison vs. Franklin Emerging Market | Pgim Jennison vs. Saat Market Growth | Pgim Jennison vs. Rbc Emerging Markets | Pgim Jennison vs. Dws Emerging Markets |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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