Correlation Between Jennison Natural and Guinness Atkinson
Can any of the company-specific risk be diversified away by investing in both Jennison Natural and Guinness Atkinson 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 Jennison Natural and Guinness Atkinson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jennison Natural Resources and Guinness Atkinson Alternative, you can compare the effects of market volatilities on Jennison Natural and Guinness Atkinson 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 Jennison Natural with a short position of Guinness Atkinson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jennison Natural and Guinness Atkinson.
Diversification Opportunities for Jennison Natural and Guinness Atkinson
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jennison and Guinness is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Jennison Natural Resources and Guinness Atkinson Alternative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guinness Atkinson and Jennison Natural 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 Jennison Natural Resources are associated (or correlated) with Guinness Atkinson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guinness Atkinson has no effect on the direction of Jennison Natural i.e., Jennison Natural and Guinness Atkinson go up and down completely randomly.
Pair Corralation between Jennison Natural and Guinness Atkinson
Assuming the 90 days horizon Jennison Natural Resources is expected to generate 0.98 times more return on investment than Guinness Atkinson. However, Jennison Natural Resources is 1.02 times less risky than Guinness Atkinson. It trades about -0.02 of its potential returns per unit of risk. Guinness Atkinson Alternative is currently generating about -0.05 per unit of risk. If you would invest 4,429 in Jennison Natural Resources on September 1, 2024 and sell it today you would lose (157.00) from holding Jennison Natural Resources or give up 3.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jennison Natural Resources vs. Guinness Atkinson Alternative
Performance |
| Timeline |
| Jennison Natural Res |
| Guinness Atkinson |
Jennison Natural and Guinness Atkinson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jennison Natural and Guinness Atkinson
The main advantage of trading using opposite Jennison Natural and Guinness Atkinson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jennison Natural position performs unexpectedly, Guinness Atkinson 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 Guinness Atkinson will offset losses from the drop in Guinness Atkinson's long position.| Jennison Natural vs. Virtus Convertible | Jennison Natural vs. Absolute Convertible Arbitrage | Jennison Natural vs. Gabelli Convertible And | Jennison Natural vs. Advent Claymore Convertible |
| Guinness Atkinson vs. New Alternatives Fund | Guinness Atkinson vs. Calvert Global Energy | Guinness Atkinson vs. Firsthand Alternative Energy | Guinness Atkinson vs. Guinness Atkinson Global |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Stocks Directory Find actively traded stocks across global markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |