Correlation Between Dana Large and Janus Balanced
Can any of the company-specific risk be diversified away by investing in both Dana Large and Janus Balanced 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 Dana Large and Janus Balanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dana Large Cap and Janus Balanced Fund, you can compare the effects of market volatilities on Dana Large and Janus Balanced 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 Dana Large with a short position of Janus Balanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dana Large and Janus Balanced.
Diversification Opportunities for Dana Large and Janus Balanced
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dana and Janus is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Dana Large Cap and Janus Balanced Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Balanced and Dana Large 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 Dana Large Cap are associated (or correlated) with Janus Balanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Balanced has no effect on the direction of Dana Large i.e., Dana Large and Janus Balanced go up and down completely randomly.
Pair Corralation between Dana Large and Janus Balanced
Assuming the 90 days horizon Dana Large Cap is expected to generate 1.39 times more return on investment than Janus Balanced. However, Dana Large is 1.39 times more volatile than Janus Balanced Fund. It trades about 0.11 of its potential returns per unit of risk. Janus Balanced Fund is currently generating about 0.09 per unit of risk. If you would invest 1,759 in Dana Large Cap on September 12, 2024 and sell it today you would earn a total of 948.00 from holding Dana Large Cap or generate 53.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dana Large Cap vs. Janus Balanced Fund
Performance |
| Timeline |
| Dana Large Cap |
| Janus Balanced |
Dana Large and Janus Balanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dana Large and Janus Balanced
The main advantage of trading using opposite Dana Large and Janus Balanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dana Large position performs unexpectedly, Janus Balanced 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 Balanced will offset losses from the drop in Janus Balanced's long position.| Dana Large vs. Gabelli Gold Fund | Dana Large vs. Franklin Gold Precious | Dana Large vs. Europac Gold Fund | Dana Large vs. Sprott Gold Equity |
| Janus Balanced vs. Total Return Fund | Janus Balanced vs. Blackrock Eq Dividend | Janus Balanced vs. Blackrock Gbl Alloc | Janus Balanced vs. Perkins Mid 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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