Correlation Between Federated High and Janus High
Can any of the company-specific risk be diversified away by investing in both Federated High and Janus High 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 Federated High and Janus High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated High Yield and Janus High Yield Fund, you can compare the effects of market volatilities on Federated High and Janus High 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 Federated High with a short position of Janus High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated High and Janus High.
Diversification Opportunities for Federated High and Janus High
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Federated and Janus is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Federated High Yield and Janus High Yield Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus High Yield and Federated High 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 Federated High Yield are associated (or correlated) with Janus High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus High Yield has no effect on the direction of Federated High i.e., Federated High and Janus High go up and down completely randomly.
Pair Corralation between Federated High and Janus High
Assuming the 90 days horizon Federated High is expected to generate 1.01 times less return on investment than Janus High. In addition to that, Federated High is 1.0 times more volatile than Janus High Yield Fund. It trades about 0.11 of its total potential returns per unit of risk. Janus High Yield Fund is currently generating about 0.11 per unit of volatility. If you would invest 618.00 in Janus High Yield Fund on August 28, 2024 and sell it today you would earn a total of 122.00 from holding Janus High Yield Fund or generate 19.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated High Yield vs. Janus High Yield Fund
Performance |
| Timeline |
| Federated High Yield |
| Janus High Yield |
Federated High and Janus High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated High and Janus High
The main advantage of trading using opposite Federated High and Janus High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated High position performs unexpectedly, Janus High 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 High will offset losses from the drop in Janus High's long position.| Federated High vs. Janus High Yield Fund | Federated High vs. Northeast Investors Trust | Federated High vs. High Yield Fund Investor | Federated High vs. Ab Sustainable Thematic |
| Janus High vs. Janus Research Fund | Janus High vs. Janus Research Fund | Janus High vs. Janus Research Fund | Janus High vs. Janus Research 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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