Correlation Between Bank of New York and Janus Henderson

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Can any of the company-specific risk be diversified away by investing in both Bank of New York and Janus Henderson 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 Bank of New York and Janus Henderson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of New and Janus Henderson Group, you can compare the effects of market volatilities on Bank of New York and Janus Henderson 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 Bank of New York with a short position of Janus Henderson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of New York and Janus Henderson.

Diversification Opportunities for Bank of New York and Janus Henderson

BankJanusDiversified AwayBankJanusDiversified Away100%
0.36
  Correlation Coefficient

Weak diversification

The 3 months correlation between Bank and Janus is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Bank of New and Janus Henderson Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Henderson Group and Bank of New York 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 Bank of New are associated (or correlated) with Janus Henderson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Henderson Group has no effect on the direction of Bank of New York i.e., Bank of New York and Janus Henderson go up and down completely randomly.

Pair Corralation between Bank of New York and Janus Henderson

Allowing for the 90-day total investment horizon Bank of New is expected to generate 0.47 times more return on investment than Janus Henderson. However, Bank of New is 2.14 times less risky than Janus Henderson. It trades about 0.13 of its potential returns per unit of risk. Janus Henderson Group is currently generating about -0.07 per unit of risk. If you would invest  8,532  in Bank of New on November 25, 2024 and sell it today you would earn a total of  193.00  from holding Bank of New or generate 2.26% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Bank of New  vs.  Janus Henderson Group

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -10-50510
JavaScript chart by amCharts 3.21.15BK JHG
       Timeline  
Bank of New York 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Bank of New are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain forward-looking signals, Bank of New York may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb7678808284868890
Janus Henderson Group 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Janus Henderson Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's technical indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb40414243444546

Bank of New York and Janus Henderson Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-4.39-3.29-2.19-1.080.01.182.373.554.73 0.050.100.150.20
JavaScript chart by amCharts 3.21.15BK JHG
       Returns  

Pair Trading with Bank of New York and Janus Henderson

The main advantage of trading using opposite Bank of New York and Janus Henderson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of New York position performs unexpectedly, Janus Henderson 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 Janus Henderson will offset losses from the drop in Janus Henderson's long position.
The idea behind Bank of New and Janus Henderson Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.

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