Correlation Between Franklin Templeton and Janus Henderson
Can any of the company-specific risk be diversified away by investing in both Franklin Templeton 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 Franklin Templeton and Janus Henderson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Templeton Investments and Janus Henderson SmallMid, you can compare the effects of market volatilities on Franklin Templeton 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 Franklin Templeton with a short position of Janus Henderson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Templeton and Janus Henderson.
Diversification Opportunities for Franklin Templeton and Janus Henderson
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Franklin and Janus is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Templeton Investments and Janus Henderson SmallMid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Henderson SmallMid and Franklin Templeton 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 Franklin Templeton Investments 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 SmallMid has no effect on the direction of Franklin Templeton i.e., Franklin Templeton and Janus Henderson go up and down completely randomly.
Pair Corralation between Franklin Templeton and Janus Henderson
Given the investment horizon of 90 days Franklin Templeton Investments is expected to generate 0.55 times more return on investment than Janus Henderson. However, Franklin Templeton Investments is 1.82 times less risky than Janus Henderson. It trades about 0.58 of its potential returns per unit of risk. Janus Henderson SmallMid is currently generating about 0.15 per unit of risk. If you would invest 5,138 in Franklin Templeton Investments on September 2, 2024 and sell it today you would earn a total of 202.00 from holding Franklin Templeton Investments or generate 3.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 7.94% |
| Values | Daily Returns |
Franklin Templeton Investments vs. Janus Henderson SmallMid
Performance |
| Timeline |
| Franklin Templeton |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Janus Henderson SmallMid |
Franklin Templeton and Janus Henderson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Templeton and Janus Henderson
The main advantage of trading using opposite Franklin Templeton and Janus Henderson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Templeton 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 Franklin Templeton Investments and Janus Henderson SmallMid 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.
| Janus Henderson vs. Janus Henderson Small | Janus Henderson vs. First Trust Mid | Janus Henderson vs. First Trust Multi | Janus Henderson vs. ClearBridge Large Cap |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |