Correlation Between Gamco Global and Prudential Jennison
Can any of the company-specific risk be diversified away by investing in both Gamco Global and Prudential 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 Gamco Global and Prudential Jennison into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamco Global Gold and Prudential Jennison Small, you can compare the effects of market volatilities on Gamco Global and Prudential 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 Gamco Global with a short position of Prudential Jennison. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamco Global and Prudential Jennison.
Diversification Opportunities for Gamco Global and Prudential Jennison
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gamco and Prudential is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Gamco Global Gold and Prudential Jennison Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prudential Jennison Small and Gamco Global 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 Gamco Global Gold are associated (or correlated) with Prudential Jennison. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prudential Jennison Small has no effect on the direction of Gamco Global i.e., Gamco Global and Prudential Jennison go up and down completely randomly.
Pair Corralation between Gamco Global and Prudential Jennison
Assuming the 90 days horizon Gamco Global is expected to generate 1.24 times less return on investment than Prudential Jennison. But when comparing it to its historical volatility, Gamco Global Gold is 1.16 times less risky than Prudential Jennison. It trades about 0.15 of its potential returns per unit of risk. Prudential Jennison Small is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 2,282 in Prudential Jennison Small on May 30, 2025 and sell it today you would earn a total of 202.00 from holding Prudential Jennison Small or generate 8.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Gamco Global Gold vs. Prudential Jennison Small
Performance |
| Timeline |
| Gamco Global Gold |
| Prudential Jennison Small |
Gamco Global and Prudential Jennison Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamco Global and Prudential Jennison
The main advantage of trading using opposite Gamco Global and Prudential Jennison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamco Global position performs unexpectedly, Prudential 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 Prudential Jennison will offset losses from the drop in Prudential Jennison's long position.| Gamco Global vs. Vanguard Total Stock | Gamco Global vs. Vanguard 500 Index | Gamco Global vs. Vanguard Total Stock | Gamco Global vs. Vanguard Total Stock |
| Prudential Jennison vs. Fidelity Advisor Energy | Prudential Jennison vs. Invesco Energy Fund | Prudential Jennison vs. Gmo Resources | Prudential Jennison vs. Goehring Rozencwajg Resources |
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.
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