Correlation Between Valic Company and Pgim Securitized

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

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

Diversification Opportunities for Valic Company and Pgim Securitized

0.82

Correlation Coefficient

Valic Company  Pgim Securitized

Very poor diversification

The 3 months correlation between Valic and Pgim is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Valic Company I and Pgim Securitized Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pgim Securitized Credit and Valic Company 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 Valic Company I are associated (or correlated) with Pgim Securitized. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pgim Securitized Credit has no effect on the direction of Valic Company i.e., Valic Company and Pgim Securitized go up and down completely randomly.

Pair Corralation between Valic Company and Pgim Securitized

Assuming the 90 days horizon Valic Company I is expected to generate 10.4 times more return on investment than Pgim Securitized. However, Valic Company is 10.4 times more volatile than Pgim Securitized Credit. It trades about 0.16 of its potential returns per unit of risk. Pgim Securitized Credit is currently generating about 0.27 per unit of risk. If you would invest  1,087  in Valic Company I on May 22, 2025 and sell it today you would earn a total of  120.00  from holding Valic Company I or generate 11.04% return on investment over 90 days.

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

Valic Company I  vs.  Pgim Securitized Credit

Valic Company I

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Valic Company I are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Valic Company may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pgim Securitized Credit

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Pgim Securitized Credit are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Pgim Securitized is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Valic Company and Pgim Securitized

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

The idea behind Valic Company I and Pgim Securitized Credit 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.