Correlation Between Jennison Natural and Scout Core
Can any of the company-specific risk be diversified away by investing in both Jennison Natural and Scout Core 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 Scout Core 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 Scout E Plus, you can compare the effects of market volatilities on Jennison Natural and Scout Core 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 Scout Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jennison Natural and Scout Core.
Diversification Opportunities for Jennison Natural and Scout Core
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jennison and Scout is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Jennison Natural Resources and Scout E Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scout E Plus 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 Scout Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scout E Plus has no effect on the direction of Jennison Natural i.e., Jennison Natural and Scout Core go up and down completely randomly.
Pair Corralation between Jennison Natural and Scout Core
Assuming the 90 days horizon Jennison Natural Resources is expected to generate 5.83 times more return on investment than Scout Core. However, Jennison Natural is 5.83 times more volatile than Scout E Plus. It trades about 0.17 of its potential returns per unit of risk. Scout E Plus is currently generating about 0.12 per unit of risk. If you would invest 4,570 in Jennison Natural Resources on September 4, 2025 and sell it today you would earn a total of 708.00 from holding Jennison Natural Resources or generate 15.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jennison Natural Resources vs. Scout E Plus
Performance |
| Timeline |
| Jennison Natural Res |
| Scout E Plus |
Jennison Natural and Scout Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jennison Natural and Scout Core
The main advantage of trading using opposite Jennison Natural and Scout Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jennison Natural position performs unexpectedly, Scout Core 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 Scout Core will offset losses from the drop in Scout Core's long position.| Jennison Natural vs. Fa 529 Aggressive | Jennison Natural vs. Qs Large Cap | Jennison Natural vs. Balanced Fund Retail | Jennison Natural vs. Ab Select Equity |
| Scout Core vs. Salient Mlp Energy | Scout Core vs. Franklin Natural Resources | Scout Core vs. Jennison Natural Resources | Scout Core vs. World Energy 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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