Correlation Between Jennison Natural and Astor Longshort
Can any of the company-specific risk be diversified away by investing in both Jennison Natural and Astor Longshort 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 Astor Longshort 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 Astor Longshort Fund, you can compare the effects of market volatilities on Jennison Natural and Astor Longshort 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 Astor Longshort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jennison Natural and Astor Longshort.
Diversification Opportunities for Jennison Natural and Astor Longshort
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jennison and Astor is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Jennison Natural Resources and Astor Longshort Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Longshort 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 Astor Longshort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astor Longshort has no effect on the direction of Jennison Natural i.e., Jennison Natural and Astor Longshort go up and down completely randomly.
Pair Corralation between Jennison Natural and Astor Longshort
Assuming the 90 days horizon Jennison Natural Resources is expected to generate 2.41 times more return on investment than Astor Longshort. However, Jennison Natural is 2.41 times more volatile than Astor Longshort Fund. It trades about 0.19 of its potential returns per unit of risk. Astor Longshort Fund is currently generating about 0.26 per unit of risk. If you would invest 4,110 in Jennison Natural Resources on May 30, 2025 and sell it today you would earn a total of 395.00 from holding Jennison Natural Resources or generate 9.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jennison Natural Resources vs. Astor Longshort Fund
Performance |
| Timeline |
| Jennison Natural Res |
| Astor Longshort |
Jennison Natural and Astor Longshort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jennison Natural and Astor Longshort
The main advantage of trading using opposite Jennison Natural and Astor Longshort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jennison Natural position performs unexpectedly, Astor Longshort 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 Astor Longshort will offset losses from the drop in Astor Longshort's long position.| Jennison Natural vs. Cref Money Market | Jennison Natural vs. Franklin Government Money | Jennison Natural vs. Rbc Money Market | Jennison Natural vs. Aig Government Money |
| Astor Longshort vs. Astor Star Fund | Astor Longshort vs. Astor Star Fund | Astor Longshort vs. Astor Longshort Fund | Astor Longshort vs. Astor Longshort Fund |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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