Correlation Between Guinness Atkinson and Pgim Jennison
Can any of the company-specific risk be diversified away by investing in both Guinness Atkinson 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 Guinness Atkinson and Pgim Jennison into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guinness Atkinson Alternative and Pgim Jennison Natural, you can compare the effects of market volatilities on Guinness Atkinson 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 Guinness Atkinson with a short position of Pgim Jennison. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guinness Atkinson and Pgim Jennison.
Diversification Opportunities for Guinness Atkinson and Pgim Jennison
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guinness and Pgim is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Guinness Atkinson Alternative and Pgim Jennison Natural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pgim Jennison Natural and Guinness Atkinson 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 Guinness Atkinson Alternative 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 Natural has no effect on the direction of Guinness Atkinson i.e., Guinness Atkinson and Pgim Jennison go up and down completely randomly.
Pair Corralation between Guinness Atkinson and Pgim Jennison
Assuming the 90 days horizon Guinness Atkinson Alternative is expected to under-perform the Pgim Jennison. But the mutual fund apears to be less risky and, when comparing its historical volatility, Guinness Atkinson Alternative is 1.06 times less risky than Pgim Jennison. The mutual fund trades about -0.01 of its potential returns per unit of risk. The Pgim Jennison Natural is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 5,310 in Pgim Jennison Natural on August 30, 2024 and sell it today you would earn a total of 476.00 from holding Pgim Jennison Natural or generate 8.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guinness Atkinson Alternative vs. Pgim Jennison Natural
Performance |
| Timeline |
| Guinness Atkinson |
| Pgim Jennison Natural |
Guinness Atkinson and Pgim Jennison Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guinness Atkinson and Pgim Jennison
The main advantage of trading using opposite Guinness Atkinson and Pgim Jennison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guinness Atkinson 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.| Guinness Atkinson vs. Firsthand Alternative Energy | Guinness Atkinson vs. Portfolio 21 Global | Guinness Atkinson vs. HUMANA INC | Guinness Atkinson vs. Aquagold International |
| Pgim Jennison vs. Guinness Atkinson Alternative | Pgim Jennison vs. Gamco Natural Resources | Pgim Jennison vs. Icon Natural Resources | Pgim Jennison vs. Fidelity Advisor Energy |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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