Correlation Between Vy Jpmorgan and Pgim Jennison

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

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

Diversification Opportunities for Vy Jpmorgan and Pgim Jennison

0.96

Correlation Coefficient

Vy Jpmorgan  Pgim Jennison

Almost no diversification

The 3 months correlation between IJSIX and Pgim is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Vy Jpmorgan Small and Pgim Jennison Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pgim Jennison Technology and Vy Jpmorgan 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 Vy Jpmorgan Small 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 Technology has no effect on the direction of Vy Jpmorgan i.e., Vy Jpmorgan and Pgim Jennison go up and down completely randomly.

Pair Corralation between Vy Jpmorgan and Pgim Jennison

Assuming the 90 days horizon Vy Jpmorgan is expected to generate 1.99 times less return on investment than Pgim Jennison. In addition to that, Vy Jpmorgan is 1.0 times more volatile than Pgim Jennison Technology. It trades about 0.11 of its total potential returns per unit of risk. Pgim Jennison Technology is currently generating about 0.23 per unit of volatility. If you would invest  2,280  in Pgim Jennison Technology on May 6, 2025 and sell it today you would earn a total of  376.00  from holding Pgim Jennison Technology or generate 16.49% return on investment over 90 days.

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

Vy Jpmorgan Small  vs.  Pgim Jennison Technology

Vy Jpmorgan Small

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Vy Jpmorgan Small are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Vy Jpmorgan may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pgim Jennison Technology

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Pgim Jennison Technology are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Pgim Jennison showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Vy Jpmorgan and Pgim Jennison

The main advantage of trading using opposite Vy Jpmorgan and Pgim Jennison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vy Jpmorgan 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 Vy Jpmorgan Small and Pgim Jennison Technology 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.