Correlation Between WisdomTree International and Janus Henderson
Can any of the company-specific risk be diversified away by investing in both WisdomTree International 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 WisdomTree International and Janus Henderson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree International Equity and Janus Henderson Small, you can compare the effects of market volatilities on WisdomTree International 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 WisdomTree International with a short position of Janus Henderson. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree International and Janus Henderson.
Diversification Opportunities for WisdomTree International and Janus Henderson
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WisdomTree and Janus is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree International Equit and Janus Henderson Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Henderson Small and WisdomTree International 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 WisdomTree International Equity 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 Small has no effect on the direction of WisdomTree International i.e., WisdomTree International and Janus Henderson go up and down completely randomly.
Pair Corralation between WisdomTree International and Janus Henderson
Considering the 90-day investment horizon WisdomTree International Equity is expected to generate 0.61 times more return on investment than Janus Henderson. However, WisdomTree International Equity is 1.64 times less risky than Janus Henderson. It trades about 0.33 of its potential returns per unit of risk. Janus Henderson Small is currently generating about 0.08 per unit of risk. If you would invest 6,669 in WisdomTree International Equity on November 29, 2025 and sell it today you would earn a total of 915.00 from holding WisdomTree International Equity or generate 13.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree International Equit vs. Janus Henderson Small
Performance |
| Timeline |
| WisdomTree International |
| Janus Henderson Small |
WisdomTree International and Janus Henderson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree International and Janus Henderson
The main advantage of trading using opposite WisdomTree International and Janus Henderson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree International 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 WisdomTree International Equity and Janus Henderson Small 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.
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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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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