Correlation Between Pgim Jennison and First Eagle

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

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

Diversification Opportunities for Pgim Jennison and First Eagle

0.93

Correlation Coefficient

Pgim Jennison  First Eagle

Almost no diversification

The 3 months correlation between Pgim and First is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Jennison Diversified and First Eagle Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Funds and Pgim Jennison 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 Pgim Jennison Diversified are associated (or correlated) with First Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Eagle Funds has no effect on the direction of Pgim Jennison i.e., Pgim Jennison and First Eagle go up and down completely randomly.

Pair Corralation between Pgim Jennison and First Eagle

Assuming the 90 days horizon Pgim Jennison Diversified is expected to generate 1.18 times more return on investment than First Eagle. However, Pgim Jennison is 1.18 times more volatile than First Eagle Funds. It trades about 0.15 of its potential returns per unit of risk. First Eagle Funds is currently generating about 0.18 per unit of risk. If you would invest  2,073  in Pgim Jennison Diversified on July 3, 2025 and sell it today you would earn a total of  145.00  from holding Pgim Jennison Diversified or generate 6.99% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.41%
Values	Daily Returns

Pgim Jennison Diversified  vs.  First Eagle Funds

Pgim Jennison Diversified

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Pgim Jennison Diversified are ranked lower than 12 (%) 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 November 2025.

First Eagle Funds

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in First Eagle Funds are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, First Eagle may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Pgim Jennison and First Eagle

The main advantage of trading using opposite Pgim Jennison and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pgim Jennison position performs unexpectedly, First Eagle 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 First Eagle will offset losses from the drop in First Eagle's long position.

The idea behind Pgim Jennison Diversified and First Eagle Funds 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.