Correlation Between Prudential Jennison and Ssga Sp

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Prudential Jennison and Ssga Sp 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 Prudential Jennison and Ssga Sp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prudential Jennison International and Ssga Sp 500, you can compare the effects of market volatilities on Prudential Jennison and Ssga Sp 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 Prudential Jennison with a short position of Ssga Sp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prudential Jennison and Ssga Sp.

Diversification Opportunities for Prudential Jennison and Ssga Sp

0.98
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Prudential and Ssga is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding PRUDENTIAL JENNISON INTERNATIO and SSGA SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ssga Sp 500 and Prudential 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 Prudential Jennison International are associated (or correlated) with Ssga Sp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ssga Sp 500 has no effect on the direction of Prudential Jennison i.e., Prudential Jennison and Ssga Sp go up and down completely randomly.

Pair Corralation between Prudential Jennison and Ssga Sp

Assuming the 90 days horizon Prudential Jennison is expected to generate 1.48 times less return on investment than Ssga Sp. In addition to that, Prudential Jennison is 1.2 times more volatile than Ssga Sp 500. It trades about 0.02 of its total potential returns per unit of risk. Ssga Sp 500 is currently generating about 0.04 per unit of volatility. If you would invest  20,254  in Ssga Sp 500 on December 30, 2023 and sell it today you would earn a total of  4,586  from holding Ssga Sp 500 or generate 22.64% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

PRUDENTIAL JENNISON INTERNATIO  vs.  SSGA SP 500

 Performance 
       Timeline  
Prudential Jennison 

Risk-Adjusted Performance

16 of 100

 
Low
 
High
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Prudential Jennison International are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Prudential Jennison showed solid returns over the last few months and may actually be approaching a breakup point.
Ssga Sp 500 

Risk-Adjusted Performance

19 of 100

 
Low
 
High
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Ssga Sp 500 are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Ssga Sp may actually be approaching a critical reversion point that can send shares even higher in April 2024.

Prudential Jennison and Ssga Sp Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Prudential Jennison and Ssga Sp

The main advantage of trading using opposite Prudential Jennison and Ssga Sp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prudential Jennison position performs unexpectedly, Ssga Sp 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 Ssga Sp will offset losses from the drop in Ssga Sp's long position.
The idea behind Prudential Jennison International and Ssga Sp 500 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

Other Complementary Tools

Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Fundamental Analysis
View fundamental data based on most recent published financial statements
Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Bonds Directory
Find actively traded corporate debentures issued by US companies
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Global Correlations
Find global opportunities by holding instruments from different markets