Correlation Between Dunham Real and Janus Henderson
Can any of the company-specific risk be diversified away by investing in both Dunham Real 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 Dunham Real and Janus Henderson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dunham Real Estate and Janus Henderson Research, you can compare the effects of market volatilities on Dunham Real 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 Dunham Real with a short position of Janus Henderson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Real and Janus Henderson.
Diversification Opportunities for Dunham Real and Janus Henderson
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dunham and Janus is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Real Estate and Janus Henderson Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Henderson Research and Dunham Real 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 Dunham Real Estate 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 Research has no effect on the direction of Dunham Real i.e., Dunham Real and Janus Henderson go up and down completely randomly.
Pair Corralation between Dunham Real and Janus Henderson
Assuming the 90 days horizon Dunham Real is expected to generate 1.19 times less return on investment than Janus Henderson. In addition to that, Dunham Real is 1.06 times more volatile than Janus Henderson Research. It trades about 0.1 of its total potential returns per unit of risk. Janus Henderson Research is currently generating about 0.13 per unit of volatility. If you would invest 5,987 in Janus Henderson Research on September 1, 2024 and sell it today you would earn a total of 2,552 from holding Janus Henderson Research or generate 42.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.63% |
| Values | Daily Returns |
Dunham Real Estate vs. Janus Henderson Research
Performance |
| Timeline |
| Dunham Real Estate |
| Janus Henderson Research |
Dunham Real and Janus Henderson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Real and Janus Henderson
The main advantage of trading using opposite Dunham Real and Janus Henderson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Real 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.| Dunham Real vs. Growth Opportunities Fund | Dunham Real vs. Nasdaq 100 Index Fund | Dunham Real vs. Eic Value Fund | Dunham Real vs. Auer Growth Fund |
| Janus Henderson vs. Janus Enterprise Fund | Janus Henderson vs. Janus Global Technology | Janus Henderson vs. Janus Global Research | Janus Henderson vs. Janus Growth And |
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.
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