Correlation Between Astor Long/short and Pgim Jennison
Can any of the company-specific risk be diversified away by investing in both Astor Long/short and Pgim 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 Astor Long/short and Pgim Jennison into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astor Longshort Fund and Pgim Jennison Technology, you can compare the effects of market volatilities on Astor Long/short and Pgim 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 Astor Long/short with a short position of Pgim Jennison. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Long/short and Pgim Jennison.
Diversification Opportunities for Astor Long/short and Pgim Jennison
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Astor and PGIM is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Pgim Jennison Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pgim Jennison Technology and Astor Long/short 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 Astor Longshort Fund are associated (or correlated) with Pgim Jennison. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pgim Jennison Technology has no effect on the direction of Astor Long/short i.e., Astor Long/short and Pgim Jennison go up and down completely randomly.
Pair Corralation between Astor Long/short and Pgim Jennison
Assuming the 90 days horizon Astor Longshort Fund is expected to generate 0.29 times more return on investment than Pgim Jennison. However, Astor Longshort Fund is 3.5 times less risky than Pgim Jennison. It trades about -0.11 of its potential returns per unit of risk. Pgim Jennison Technology is currently generating about -0.15 per unit of risk. If you would invest 1,192 in Astor Longshort Fund on November 29, 2024 and sell it today you would lose (10.00) from holding Astor Longshort Fund or give up 0.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astor Longshort Fund vs. Pgim Jennison Technology
Performance |
| Timeline |
| Astor Long/short |
| Pgim Jennison Technology |
Astor Long/short and Pgim Jennison Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Long/short and Pgim Jennison
The main advantage of trading using opposite Astor Long/short and Pgim Jennison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Long/short position performs unexpectedly, Pgim 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 Pgim Jennison will offset losses from the drop in Pgim Jennison's long position.| Astor Long/short vs. Ft 7934 Corporate | Astor Long/short vs. Tfa Alphagen Growth | Astor Long/short vs. Barings Active Short | Astor Long/short vs. Rbc Emerging Markets |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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