Correlation Between Martin Currie and Prudential Jennison
Can any of the company-specific risk be diversified away by investing in both Martin Currie and Prudential 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 Martin Currie and Prudential Jennison into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Martin Currie Emerging and Prudential Jennison Equity, you can compare the effects of market volatilities on Martin Currie and Prudential 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 Martin Currie with a short position of Prudential Jennison. Check out your portfolio center. Please also check ongoing floating volatility patterns of Martin Currie and Prudential Jennison.
Diversification Opportunities for Martin Currie and Prudential Jennison
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Martin and Prudential is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Martin Currie Emerging and Prudential Jennison Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prudential Jennison and Martin Currie 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 Martin Currie Emerging are associated (or correlated) with Prudential Jennison. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prudential Jennison has no effect on the direction of Martin Currie i.e., Martin Currie and Prudential Jennison go up and down completely randomly.
Pair Corralation between Martin Currie and Prudential Jennison
Assuming the 90 days horizon Martin Currie Emerging is expected to generate 1.69 times more return on investment than Prudential Jennison. However, Martin Currie is 1.69 times more volatile than Prudential Jennison Equity. It trades about 0.17 of its potential returns per unit of risk. Prudential Jennison Equity is currently generating about 0.09 per unit of risk. If you would invest 1,580 in Martin Currie Emerging on July 25, 2025 and sell it today you would earn a total of 79.00 from holding Martin Currie Emerging or generate 5.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Martin Currie Emerging vs. Prudential Jennison Equity
Performance |
| Timeline |
| Martin Currie Emerging |
| Prudential Jennison |
Martin Currie and Prudential Jennison Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Martin Currie and Prudential Jennison
The main advantage of trading using opposite Martin Currie and Prudential Jennison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Martin Currie position performs unexpectedly, Prudential 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 Prudential Jennison will offset losses from the drop in Prudential Jennison's long position.| Martin Currie vs. Martin Currie Emerging | Martin Currie vs. Martin Currie Emerging | Martin Currie vs. Prudential Jennison Equity | Martin Currie vs. Prudential Jennison Equity |
| Prudential Jennison vs. Prudential Jennison Equity | Prudential Jennison vs. Martin Currie Emerging | Prudential Jennison vs. Martin Currie Emerging | Prudential Jennison vs. Martin Currie Emerging |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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