Correlation Between StealthGas and Pgim Jennison

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

By analyzing existing cross correlation between StealthGas and Pgim Jennison Diversified, you can compare the effects of market volatilities on StealthGas 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 StealthGas with a short position of Pgim Jennison. Check out your portfolio center. Please also check ongoing floating volatility patterns of StealthGas and Pgim Jennison.

Diversification Opportunities for StealthGas and Pgim Jennison

0.07

Correlation Coefficient

StealthGas  Pgim Jennison

Significant diversification

The 3 months correlation between StealthGas and Pgim is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding StealthGas 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 StealthGas 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 StealthGas 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 StealthGas i.e., StealthGas and Pgim Jennison go up and down completely randomly.

Pair Corralation between StealthGas and Pgim Jennison

Given the investment horizon of 90 days StealthGas is expected to generate 2.44 times more return on investment than Pgim Jennison. However, StealthGas is 2.44 times more volatile than Pgim Jennison Diversified. It trades about 0.06 of its potential returns per unit of risk. Pgim Jennison Diversified is currently generating about 0.11 per unit of risk. If you would invest  317.00  in StealthGas on August 15, 2024 and sell it today you would earn a total of  290.00  from holding StealthGas or generate 91.48% return on investment over 90 days.

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

StealthGas  vs.  Pgim Jennison Diversified

StealthGas

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in StealthGas are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, StealthGas is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pgim Jennison Diversified

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Pgim Jennison Diversified are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Pgim Jennison may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with StealthGas and Pgim Jennison

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

The idea behind StealthGas and Pgim Jennison Diversified 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.

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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.