Correlation Between Pgim Jennison and Guinness Atkinson
Can any of the company-specific risk be diversified away by investing in both Pgim Jennison 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 Pgim Jennison and Guinness Atkinson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pgim Jennison Natural and Guinness Atkinson Alternative, you can compare the effects of market volatilities on Pgim Jennison 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 Pgim Jennison with a short position of Guinness Atkinson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pgim Jennison and Guinness Atkinson.
Diversification Opportunities for Pgim Jennison and Guinness Atkinson
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Pgim and Guinness is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Jennison Natural and Guinness Atkinson Alternative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guinness Atkinson 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 Natural 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 Pgim Jennison i.e., Pgim Jennison and Guinness Atkinson go up and down completely randomly.
Pair Corralation between Pgim Jennison and Guinness Atkinson
Assuming the 90 days horizon Pgim Jennison Natural is expected to generate 0.97 times more return on investment than Guinness Atkinson. However, Pgim Jennison Natural is 1.03 times less risky than Guinness Atkinson. It trades about -0.01 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 6,017 in Pgim Jennison Natural on September 1, 2024 and sell it today you would lose (182.00) from holding Pgim Jennison Natural or give up 3.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Pgim Jennison Natural vs. Guinness Atkinson Alternative
Performance |
| Timeline |
| Pgim Jennison Natural |
| Guinness Atkinson |
Pgim Jennison and Guinness Atkinson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pgim Jennison and Guinness Atkinson
The main advantage of trading using opposite Pgim Jennison and Guinness Atkinson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pgim Jennison 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.| Pgim Jennison vs. L Abbett Growth | Pgim Jennison vs. Kinetics Small Cap | Pgim Jennison vs. Nationwide Growth Fund | Pgim Jennison vs. Artisan Small Cap |
| 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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