Correlation Between Dow Jones and Janus Triton
Can any of the company-specific risk be diversified away by investing in both Dow Jones and Janus Triton 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 Dow Jones and Janus Triton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dow Jones Industrial and Janus Triton Fund, you can compare the effects of market volatilities on Dow Jones and Janus Triton 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 Dow Jones with a short position of Janus Triton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Janus Triton.
Diversification Opportunities for Dow Jones and Janus Triton
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dow and Janus is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Janus Triton Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Triton and Dow Jones 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 Dow Jones Industrial are associated (or correlated) with Janus Triton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Triton has no effect on the direction of Dow Jones i.e., Dow Jones and Janus Triton go up and down completely randomly.
Pair Corralation between Dow Jones and Janus Triton
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.89 times more return on investment than Janus Triton. However, Dow Jones Industrial is 1.13 times less risky than Janus Triton. It trades about 0.27 of its potential returns per unit of risk. Janus Triton Fund is currently generating about 0.24 per unit of risk. If you would invest 4,238,757 in Dow Jones Industrial on August 28, 2024 and sell it today you would earn a total of 247,274 from holding Dow Jones Industrial or generate 5.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. Janus Triton Fund
Performance |
| Timeline |
Dow Jones and Janus Triton Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Janus Triton Fund
Pair trading matchups for Janus Triton
Pair Trading with Dow Jones and Janus Triton
The main advantage of trading using opposite Dow Jones and Janus Triton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Janus Triton 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 Triton will offset losses from the drop in Janus Triton's long position.| Dow Jones vs. CECO Environmental Corp | Dow Jones vs. Western Acquisition Ventures | Dow Jones vs. Tyson Foods | Dow Jones vs. Inflection Point Acquisition |
| Janus Triton vs. Janus Global Life | Janus Triton vs. Janus Enterprise Fund | Janus Triton vs. Janus Trarian Fund | Janus Triton vs. Janus Balanced 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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