Correlation Between Prudential Jennison and Ashmore Emerging
Can any of the company-specific risk be diversified away by investing in both Prudential Jennison and Ashmore Emerging 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 Prudential Jennison and Ashmore Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prudential Jennison Global and Ashmore Emerging Markets, you can compare the effects of market volatilities on Prudential Jennison and Ashmore Emerging 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 Prudential Jennison with a short position of Ashmore Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prudential Jennison and Ashmore Emerging.
Diversification Opportunities for Prudential Jennison and Ashmore Emerging
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Prudential and Ashmore is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Prudential Jennison Global and Ashmore Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ashmore Emerging Markets and Prudential Jennison 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 Prudential Jennison Global are associated (or correlated) with Ashmore Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ashmore Emerging Markets has no effect on the direction of Prudential Jennison i.e., Prudential Jennison and Ashmore Emerging go up and down completely randomly.
Pair Corralation between Prudential Jennison and Ashmore Emerging
If you would invest 882.00 in Ashmore Emerging Markets on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Ashmore Emerging Markets or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prudential Jennison Global vs. Ashmore Emerging Markets
Performance |
| Timeline |
| Prudential Jennison |
| Ashmore Emerging Markets |
Prudential Jennison and Ashmore Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prudential Jennison and Ashmore Emerging
The main advantage of trading using opposite Prudential Jennison and Ashmore Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prudential Jennison position performs unexpectedly, Ashmore Emerging 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 Ashmore Emerging will offset losses from the drop in Ashmore Emerging's long position.| Prudential Jennison vs. Gabelli Gold Fund | Prudential Jennison vs. James Balanced Golden | Prudential Jennison vs. Invesco Gold Special | Prudential Jennison vs. Goldman Sachs Clean |
| Ashmore Emerging vs. Ab Government Exchange | Ashmore Emerging vs. Elfun Government Money | Ashmore Emerging vs. Dws Government Money | Ashmore Emerging vs. Edward Jones Money |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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