Correlation Between Jennison Natural and Calvert Bond
Can any of the company-specific risk be diversified away by investing in both Jennison Natural and Calvert Bond 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 Calvert Bond 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 Calvert Bond Portfolio, you can compare the effects of market volatilities on Jennison Natural and Calvert Bond 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 Calvert Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jennison Natural and Calvert Bond.
Diversification Opportunities for Jennison Natural and Calvert Bond
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jennison and Calvert is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Jennison Natural Resources and Calvert Bond Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Bond Portfolio 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 Calvert Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Bond Portfolio has no effect on the direction of Jennison Natural i.e., Jennison Natural and Calvert Bond go up and down completely randomly.
Pair Corralation between Jennison Natural and Calvert Bond
Assuming the 90 days horizon Jennison Natural Resources is expected to generate 3.65 times more return on investment than Calvert Bond. However, Jennison Natural is 3.65 times more volatile than Calvert Bond Portfolio. It trades about 0.11 of its potential returns per unit of risk. Calvert Bond Portfolio is currently generating about 0.06 per unit of risk. If you would invest 4,300 in Jennison Natural Resources on April 13, 2025 and sell it today you would earn a total of 79.00 from holding Jennison Natural Resources or generate 1.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Jennison Natural Resources vs. Calvert Bond Portfolio
Performance |
| Timeline |
| Jennison Natural Res |
| Calvert Bond Portfolio |
Jennison Natural and Calvert Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jennison Natural and Calvert Bond
The main advantage of trading using opposite Jennison Natural and Calvert Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jennison Natural position performs unexpectedly, Calvert Bond 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 Calvert Bond will offset losses from the drop in Calvert Bond's long position.| Jennison Natural vs. Artisan Global Opportunities | Jennison Natural vs. Dws Global Macro | Jennison Natural vs. Barings Global Floating | Jennison Natural vs. Franklin Mutual Global |
| Calvert Bond vs. Gabelli Gold Fund | Calvert Bond vs. Gold And Precious | Calvert Bond vs. Gamco Global Gold | Calvert Bond vs. Vy Goldman Sachs |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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