Correlation Between Pgim Jennison and Cushing Mlp

Can any of the company-specific risk be diversified away by investing in both Pgim Jennison and Cushing Mlp 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 Cushing Mlp 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 Cushing Mlp Total, you can compare the effects of market volatilities on Pgim Jennison and Cushing Mlp 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 Cushing Mlp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pgim Jennison and Cushing Mlp.

Diversification Opportunities for Pgim Jennison and Cushing Mlp

0.59

Correlation Coefficient

Pgim Jennison  Cushing Mlp

Very weak diversification

The 3 months correlation between Pgim and Cushing is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Jennison Diversified and Cushing Mlp Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cushing Mlp Total 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 Cushing Mlp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cushing Mlp Total has no effect on the direction of Pgim Jennison i.e., Pgim Jennison and Cushing Mlp go up and down completely randomly.

Pair Corralation between Pgim Jennison and Cushing Mlp

Assuming the 90 days horizon Pgim Jennison is expected to generate 1.1 times less return on investment than Cushing Mlp. But when comparing it to its historical volatility, Pgim Jennison Diversified is 1.26 times less risky than Cushing Mlp. It trades about 0.1 of its potential returns per unit of risk. Cushing Mlp Total is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  2,470  in Cushing Mlp Total on August 21, 2024 and sell it today you would earn a total of  1,888  from holding Cushing Mlp Total or generate 76.44% return on investment over 90 days.

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

Pgim Jennison Diversified  vs.  Cushing Mlp Total

Pgim Jennison Diversified

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Pgim Jennison Diversified are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Pgim Jennison is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Cushing Mlp Total

Risk-Adjusted Performance

9 of 100

OK

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

Pair Trading with Pgim Jennison and Cushing Mlp

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

The idea behind Pgim Jennison Diversified and Cushing Mlp Total 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.