Correlation Between Didi Global and Janus Global
Can any of the company-specific risk be diversified away by investing in both Didi Global and Janus Global 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 Didi Global and Janus Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Didi Global ADR and Janus Global Technology, you can compare the effects of market volatilities on Didi Global and Janus Global 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 Didi Global with a short position of Janus Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Didi Global and Janus Global.
Diversification Opportunities for Didi Global and Janus Global
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Didi and Janus is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Didi Global ADR and Janus Global Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Global Technology and Didi Global 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 Didi Global ADR are associated (or correlated) with Janus Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Global Technology has no effect on the direction of Didi Global i.e., Didi Global and Janus Global go up and down completely randomly.
Pair Corralation between Didi Global and Janus Global
Assuming the 90 days horizon Didi Global ADR is expected to generate 5.08 times more return on investment than Janus Global. However, Didi Global is 5.08 times more volatile than Janus Global Technology. It trades about 0.15 of its potential returns per unit of risk. Janus Global Technology is currently generating about 0.11 per unit of risk. If you would invest 299.00 in Didi Global ADR on August 24, 2024 and sell it today you would earn a total of 136.00 from holding Didi Global ADR or generate 45.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 9.27% |
| Values | Daily Returns |
Didi Global ADR vs. Janus Global Technology
Performance |
| Timeline |
| Didi Global ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Janus Global Technology |
Didi Global and Janus Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Didi Global and Janus Global
The main advantage of trading using opposite Didi Global and Janus Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Didi Global position performs unexpectedly, Janus Global 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 Global will offset losses from the drop in Janus Global's long position.| Didi Global vs. LYFT Inc | Didi Global vs. Unity Software | Didi Global vs. Uber Technologies | Didi Global vs. Digital Turbine |
| Janus Global vs. Janus Global Life | Janus Global vs. Janus Research Fund | Janus Global vs. Janus Enterprise Fund | Janus Global vs. Janus Trarian Fund |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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