Prudential Financial Stock Volatility
| PRU Stock | USD 93.03 0.52 0.56% |
Prudential Financial exhibits relatively low price volatility over the last 3 months. Prudential Financial indicates a Sharpe ratio of -0.19, indicating deteriorating return efficiency over the last 3 months. The current setup includes 24 technical indicators relevant to risk behavior.
Sharpe Ratio = -0.1874
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| Negative Returns | PRU |
Latest disclosures for Prudential Financial show a Market Risk Adjusted Performance of -0.3%, a Risk of 1.62, and a Risk Adjusted Performance of -0.2%. Prudential Financial is below full potential per monthly moving average. Adding it to a well-diversified portfolio can optimize the risk-return balance.
Key indicators related to Prudential Financial's volatility include:90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Managing volatility risk for Prudential Financial positions requires understanding whether Prudential Financial's elevated volatility is driven by fundamental changes or temporary market sentiment. Fundamental-driven volatility for Prudential Financial tends to persist longer than sentiment-driven spikes.
Prudential | Build portfolio with Prudential Stock |
Volatility Strategy
Prudential Financial return swings may impact long-term portfolio variance. Current statistical measures show total volatility near 1.62% with a beta coefficient of 1.07, indicating sensitivity relative to the broader market benchmark. Risk-adjusted efficiency, represented by a Sharpe ratio of -0.19, evaluates return per unit of total risk. An alpha value of -0.23 reflects performance relative to systematic market exposure. Expected return estimates near -0.3% are derived from historical distribution modeling and help frame forward-looking return assumptions within a portfolio context. Competitive positioning may influence variability.
Main indicators related to Prudential Financial's market risk premium analysis include:
Beta 1.07 | Alpha -0.23 | Risk 1.62 | Sharpe Ratio -0.19 | Expected Return -0.30 |
Moving together with Prudential Stock
| 0.72 | AEG | Aegon NV ADR | PairCorr |
| 0.62 | CNO | CNO Financial Group | PairCorr |
| 0.87 | MET | MetLife | PairCorr |
| 0.83 | UNM | Unum Group | PairCorr |
| 0.79 | OSCR | Oscar Health | PairCorr |
| 0.91 | MPL | Medibank Private | PairCorr |
| 0.8 | MSB | Mesabi Trust | PairCorr |
| 0.83 | NTNX | Nutanix | PairCorr |
Moving against Prudential Stock
| 0.71 | SBRA | Sabra Healthcare REIT | PairCorr |
| 0.59 | QVCD | QVC 6375 percent | PairCorr |
| 0.41 | NN | NN Group NV | PairCorr |
| 0.33 | EMPPF | EMP Metals Corp | PairCorr |
Sensitivity To Market
Prudential Financial demonstrates a beta of 1.07, indicating market-linked volatility exposure. Regression slope interpretation supports this systematic risk estimate. Total volatility measures approximately 1.62%.Prudential Financial volatility can be described using downside deviation (0.0%), which captures negative-return intensity over the selected horizon. Options markets imply a forward-looking volatility estimate near 44.0%. This indicates expectations for moderate future movement relative to historical averages. Stock volatility often clusters, meaning high-volatility periods can come in waves.
| α | -0.2263 | β | 1.07 | Check current 90 days Prudential Financial correlation with market (Dow Jones Industrial)
Downside Risk
Prudential standard deviation quantifies the magnitude of daily price swings relative to the average over the selected period. More volatile instruments exhibit higher standard deviations. This measure counts all price dispersion as risk, including returns above the mean.
Standard Deviation | 1.62 |
Standard deviation of Prudential Financial captures both favorable and adverse price swings. Downside deviation and semi-deviation focus exclusively on the adverse side of Prudential Financial's return distribution. Latest disclosures for Prudential Financial show a Maximum Drawdown of 7.74.
Using Prudential Put Option to Manage Risk Based on 2026-06-18 Contracts
Latest disclosures for Prudential Financial show an Option Implied Volatility of 0.44 and an Option Max Pain Price of 92.50. A put option on Prudential Financial functions as an insurance policy for investors holding Prudential Financial's shares. It grants the holder the right to sell Prudential Stock at the strike price before the expiration date.
Prudential Financial's PUT expiring on 2026-06-18
Profit |
| Prudential Financial Price At Expiration |
Current Prudential Financial Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | PRU260618P00050000 | -0.07723 | 0.002893 | 109 | 2026-06-18 | 0.0 - 2.2 | 0.0 | View |
Put | PRU260618P00055000 | -0.055502 | 0.003232 | 3 | 2026-06-18 | 0.0 - 0.95 | 0.0 | View |
Put | PRU260618P00060000 | -0.055523 | 0.003977 | 14 | 2026-06-18 | 0.0 - 0.75 | 0.0 | View |
Put | PRU260618P00065000 | -0.043482 | 0.004457 | 749 | 2026-06-18 | 0.2 - 0.55 | 0.0 | View |
Put | PRU260618P00070000 | -0.078088 | 0.007296 | 266 | 2026-06-18 | 0.5 - 1.0 | 0.0 | View |
Put | PRU260618P00075000 | -0.120815 | 0.010881 | 174 | 2026-06-18 | 0.9 - 1.45 | 0.0 | View |
Put | PRU260618P00080000 | -0.187368 | 0.015491 | 298 | 2026-06-18 | 1.45 - 2.35 | 0.0 | View |
Put | PRU260618P00085000 | -0.276489 | 0.020795 | 467 | 2026-06-18 | 2.75 - 3.4 | 0.0 | View |
Put | PRU260618P00087500 | -0.334 | 0.022878 | 280 | 2026-06-18 | 3.5 - 4.2 | 0.0 | View |
Put | PRU260618P00090000 | -0.393921 | 0.025547 | 631 | 2026-06-18 | 4.2 - 5.1 | 0.0 | View |
Put | PRU260618P00092500 | -0.460617 | 0.026713 | 183 | 2026-06-18 | 5.1 - 6.2 | 0.0 | View |
Stock Volatility Analysis
Volatility is a core concept when evaluating Prudential Financial as part of a diversified portfolio. The stock's historical price swings give investors a sense of how much risk Prudential Financial's adds. Combining Prudential Financial with lower-volatility assets can reduce overall portfolio risk.
Transformation |
This analysis covers sixty-one data points across the selected time horizon. Prudential Financial Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
Projected Return Density Against Market
Considering the 90-day investment horizon Prudential Financial has a beta of 1.0726 indicating Prudential Financial market returns are related to returns on the market. As the market goes up or down, Prudential Financial is expected to follow.Market risk ties Prudential Financial to macro cycles, whereas company or sector-specific developments represent independent drivers. Volatility metrics help measure this balance. Latest disclosures for Prudential Financial show a Mean Deviation of 1.17, an Option Implied Volatility of 0.44, and a Standard Deviation of 1.58.
Predicted Return Density |
| Returns |
What Drives Prudential Financial's Price Volatility?
Several factors can influence Prudential Financial's market volatility:Industry Dynamics
Sector-level events can directly affect Prudential Financial's price stability. Regulatory changes, supply disruptions, or shifts in demand within Prudential Financial's industry may create volatility even when the broader market is calm. Competitive dynamics and industry consolidation can also amplify price swings for companies like Prudential Financial.Political and Economic Environment
Macroeconomic conditions and policy decisions shape the backdrop for Prudential Financial's price movements. Interest rate changes, trade policy shifts, and fiscal legislation can all alter investor sentiment toward Prudential Financial. During periods of economic expansion, Prudential Financial's price tends to benefit from broader market optimism, while downturns can amplify selling pressure.Prudential Financial's Company-Specific Factors
Volatility can also stem from events unique to Prudential Financial. Earnings surprises, management changes, product launches, or legal developments may trigger sharp price reactions in Prudential Financial's stock. Conversely, operational setbacks, guidance revisions, or data breaches can weigh on Prudential Financial's share price.Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Prudential Financial is -533.73. The daily returns are distributed with a variance of 2.64 and standard deviation of 1.62. The mean deviation of Prudential Financial is currently at 1.23. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.8
α | Alpha over Dow Jones | -0.2263 | |
β | Beta against Dow Jones | 1.07 | |
σ | Overall volatility | 1.62 | |
Ir | Information ratio | -0.148 |
Stock Return Volatility
Prudential Financial daily volatility tracks how widely stock returns have moved around the mean across the selected time frame. The firm reflects 1.6243% volatility on return distribution over a 90-day horizon. On the other hand, Dow Jones Industrial has volatility of 0.8181% on return distribution over a 90-day investment horizon. Performance |
| Timeline |
Related Correlations Analysis
Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.High positive correlations
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Risk-Adjusted Indicators
Surface-level performance for Prudential Stock can mask how the business actually stacks up against its competitive set. Without reviewing risk-adjusted indicators, investors may overweight recent returns and underweight the volatility required to achieve them. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| LNC | 1.70 | -0.24 | 0.00 | -0.25 | 0.00 | 2.93 | 16.19 | |||
| AFL | 0.77 | -0.04 | 0.00 | -0.23 | 0.00 | 1.77 | 6.76 | |||
| BHF | 0.41 | -0.14 | 0.00 | -1.10 | 0.00 | 0.59 | 4.70 | |||
| UNM | 1.03 | -0.02 | 0.00 | -0.14 | 0.00 | 1.99 | 6.34 | |||
| MET | 1.19 | -0.15 | 0.00 | -0.22 | 0.00 | 1.93 | 7.67 | |||
| JXN | 1.49 | 0.14 | 0.00 | -0.01 | 0.00 | 3.35 | 9.78 | |||
| MFC | 1.05 | 0.03 | 0.00 | -0.07 | 0.00 | 1.95 | 7.69 | |||
| GL | 0.84 | 0.01 | 0.00 | -0.08 | 0.00 | 1.80 | 5.77 | |||
| PUK | 1.37 | 0.08 | 0.00 | -0.05 | 0.00 | 2.11 | 9.10 |
Risk Metrics, Assumptions & Methodology
Volatility for Prudential Financial measures return dispersion and uncertainty over time. Uncertainty impacts position sizing assumptions in portfolio models. Prudential Financial has a market cap of 32.37 B, P/E of 134.69, ROE of 11.36%.
Macroaxis compiles Prudential Financial metrics from periodic company reporting and market reference feeds and applies consistent transformation rules before display. Professional analyst research is incorporated when coverage is available. Not all fields update in real time. Volatility and downside metrics are estimated from historical return dispersion.
This content is curated and reviewed by:
Ellen Johnson - Member of Macroaxis Editorial BoardPrudential Financial Investment Opportunity
Measured over the selected horizon, Prudential Financial carries roughly 1.98 times the return volatility of Dow Jones Industrial. Across the current 90-day horizon, that places the security below 14% of the broader equity and portfolio universe on a pure volatility basis.You can use Prudential Financial to enhance the returns of your portfolios. This move summary looks at how the current session may translate into a basic near-term setup. It gives extra weight to the size of the move, the quote level, and whether the instrument trades in a hype-prone venue. a moderate upward volatility. Check odds of Prudential Financial to be traded at $102.33 in 90 days.Very weak diversification
Across the chosen horizon, PRU and DJI show a correlation of 0.45 and fall into the Very weak diversification bucket. In portfolio terms, the overlap visualization shows how much shared movement remains after both positions are combined.
Prudential Financial Additional Risk Indicators
Looking at additional risk metrics for Prudential Financial frames how the position may behave under different market and portfolio conditions. A disciplined risk review provides context for deciding whether exposure should be maintained, reduced, or offset elsewhere in the portfolio.
| Risk Adjusted Performance | -0.16 | |||
| Market Risk Adjusted Performance | -0.30 | |||
| Mean Deviation | 1.17 | |||
| Coefficient Of Variation | -490.16 | |||
| Standard Deviation | 1.58 | |||
| Variance | 2.49 | |||
| Information Ratio | -0.15 |
Prudential Financial Suggested Diversification Pairs
Pair trading with Prudential Financial can help investors hedge some company-specific exposure by balancing a long view with an offsetting position. A disciplined pair strategy still requires monitoring because correlation can weaken when market regimes change.
Pair strategies help manage risk, but investors should recognize that not all risk can be diversified away through pairing. Market-level risk for Prudential Financial persists even in a well-constructed pair. The benefit is in offsetting Prudential Financial's company-specific risk, which can be meaningfully reduced by selecting a second position that moves independently of Prudential Financial.
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