Correlation Between Jennison Natural and Sentinel Multi-asset
Can any of the company-specific risk be diversified away by investing in both Jennison Natural and Sentinel Multi-asset 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 Sentinel Multi-asset 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 Sentinel Multi Asset Income, you can compare the effects of market volatilities on Jennison Natural and Sentinel Multi-asset 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 Sentinel Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jennison Natural and Sentinel Multi-asset.
Diversification Opportunities for Jennison Natural and Sentinel Multi-asset
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jennison and Sentinel is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Jennison Natural Resources and Sentinel Multi Asset Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sentinel Multi Asset 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 Sentinel Multi-asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sentinel Multi Asset has no effect on the direction of Jennison Natural i.e., Jennison Natural and Sentinel Multi-asset go up and down completely randomly.
Pair Corralation between Jennison Natural and Sentinel Multi-asset
Assuming the 90 days horizon Jennison Natural is expected to generate 1.29 times less return on investment than Sentinel Multi-asset. But when comparing it to its historical volatility, Jennison Natural Resources is 1.23 times less risky than Sentinel Multi-asset. It trades about 0.01 of its potential returns per unit of risk. Sentinel Multi Asset Income is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 5,157 in Sentinel Multi Asset Income on September 3, 2024 and sell it today you would earn a total of 130.00 from holding Sentinel Multi Asset Income or generate 2.52% 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. Sentinel Multi Asset Income
Performance |
| Timeline |
| Jennison Natural Res |
| Sentinel Multi Asset |
Jennison Natural and Sentinel Multi-asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jennison Natural and Sentinel Multi-asset
The main advantage of trading using opposite Jennison Natural and Sentinel Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jennison Natural position performs unexpectedly, Sentinel Multi-asset 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 Sentinel Multi-asset will offset losses from the drop in Sentinel Multi-asset's long position.| Jennison Natural vs. Lord Abbett Small | Jennison Natural vs. Columbia Small Cap | Jennison Natural vs. Heartland Value Plus | Jennison Natural vs. Ab Discovery Value |
| Sentinel Multi-asset vs. Ab Discovery Value | Sentinel Multi-asset vs. Lord Abbett Small | Sentinel Multi-asset vs. Pace Smallmedium Value | Sentinel Multi-asset vs. Queens Road Small |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |