Correlation Between Altegris Futures and Janus Henderson
Can any of the company-specific risk be diversified away by investing in both Altegris Futures 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 Altegris Futures and Janus Henderson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altegris Futures Evolution and Janus Henderson Research, you can compare the effects of market volatilities on Altegris Futures 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 Altegris Futures with a short position of Janus Henderson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altegris Futures and Janus Henderson.
Diversification Opportunities for Altegris Futures and Janus Henderson
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Altegris and Janus is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Altegris Futures Evolution 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 Altegris Futures 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 Altegris Futures Evolution 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 Altegris Futures i.e., Altegris Futures and Janus Henderson go up and down completely randomly.
Pair Corralation between Altegris Futures and Janus Henderson
Assuming the 90 days horizon Altegris Futures is expected to generate 2.06 times less return on investment than Janus Henderson. But when comparing it to its historical volatility, Altegris Futures Evolution is 3.12 times less risky than Janus Henderson. It trades about 0.05 of its potential returns per unit of risk. Janus Henderson Research is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 8,146 in Janus Henderson Research on November 2, 2024 and sell it today you would earn a total of 172.00 from holding Janus Henderson Research or generate 2.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altegris Futures Evolution vs. Janus Henderson Research
Performance |
| Timeline |
| Altegris Futures Evo |
| Janus Henderson Research |
Altegris Futures and Janus Henderson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altegris Futures and Janus Henderson
The main advantage of trading using opposite Altegris Futures and Janus Henderson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altegris Futures 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.| Altegris Futures vs. Columbia Global Technology | Altegris Futures vs. Technology Ultrasector Profund | Altegris Futures vs. Pgim Jennison Technology | Altegris Futures vs. Icon Information Technology |
| Janus Henderson vs. Tfa Alphagen Growth | Janus Henderson vs. Rbc Global Equity | Janus Henderson vs. T Rowe Price | Janus Henderson vs. Tax Managed Large 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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