Correlation Between Nt International and Prudential Jennison

Can any of the company-specific risk be diversified away by investing in both Nt International 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 Nt International and Prudential Jennison into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Nt International Small Mid and Prudential Jennison Equity, you can compare the effects of market volatilities on Nt International 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 Nt International with a short position of Prudential Jennison. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nt International and Prudential Jennison.

Diversification Opportunities for Nt International and Prudential Jennison

0.82

Correlation Coefficient

Nt International  Prudential Jennison

Very poor diversification

The 3 months correlation between ANTMX and Prudential is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Nt International Small Mid and Prudential Jennison Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prudential Jennison and Nt International 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 Nt International Small Mid 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 has no effect on the direction of Nt International i.e., Nt International and Prudential Jennison go up and down completely randomly.

Pair Corralation between Nt International and Prudential Jennison

Assuming the 90 days horizon Nt International Small Mid is expected to generate 1.36 times more return on investment than Prudential Jennison. However, Nt International is 1.36 times more volatile than Prudential Jennison Equity. It trades about 0.22 of its potential returns per unit of risk. Prudential Jennison Equity is currently generating about 0.13 per unit of risk. If you would invest  1,025  in Nt International Small Mid on May 5, 2025 and sell it today you would earn a total of  105.00  from holding Nt International Small Mid or generate 10.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Nt International Small Mid  vs.  Prudential Jennison Equity

Nt International Small

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Nt International Small Mid are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak primary indicators, Nt International may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Prudential Jennison

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Prudential Jennison Equity are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Prudential Jennison is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Nt International and Prudential Jennison

The main advantage of trading using opposite Nt International and Prudential Jennison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nt International 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.

The idea behind Nt International Small Mid and Prudential Jennison Equity pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..