Correlation Between Federated Kaufmann and Janus Multi-sector
Can any of the company-specific risk be diversified away by investing in both Federated Kaufmann and Janus Multi-sector 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 Kaufmann and Janus Multi-sector into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Kaufmann Small and Janus Multi Sector Income, you can compare the effects of market volatilities on Federated Kaufmann and Janus Multi-sector 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 Kaufmann with a short position of Janus Multi-sector. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Kaufmann and Janus Multi-sector.
Diversification Opportunities for Federated Kaufmann and Janus Multi-sector
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Federated and Janus is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Federated Kaufmann Small and Janus Multi Sector Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Multi Sector and Federated Kaufmann 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 Kaufmann Small are associated (or correlated) with Janus Multi-sector. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Multi Sector has no effect on the direction of Federated Kaufmann i.e., Federated Kaufmann and Janus Multi-sector go up and down completely randomly.
Pair Corralation between Federated Kaufmann and Janus Multi-sector
Assuming the 90 days horizon Federated Kaufmann Small is expected to generate 5.76 times more return on investment than Janus Multi-sector. However, Federated Kaufmann is 5.76 times more volatile than Janus Multi Sector Income. It trades about 0.1 of its potential returns per unit of risk. Janus Multi Sector Income is currently generating about 0.18 per unit of risk. If you would invest 4,910 in Federated Kaufmann Small on September 5, 2024 and sell it today you would earn a total of 708.00 from holding Federated Kaufmann Small or generate 14.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Kaufmann Small vs. Janus Multi Sector Income
Performance |
| Timeline |
| Federated Kaufmann Small |
| Janus Multi Sector |
Federated Kaufmann and Janus Multi-sector Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Kaufmann and Janus Multi-sector
The main advantage of trading using opposite Federated Kaufmann and Janus Multi-sector positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Kaufmann position performs unexpectedly, Janus Multi-sector 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 Multi-sector will offset losses from the drop in Janus Multi-sector's long position.| Federated Kaufmann vs. Aqr Managed Futures | Federated Kaufmann vs. Ab Bond Inflation | Federated Kaufmann vs. Ab Bond Inflation | Federated Kaufmann vs. Fidelity Sai Inflationfocused |
| Janus Multi-sector vs. Henderson Strategic Income | Janus Multi-sector vs. Janus Balanced Fund | Janus Multi-sector vs. Prudential Total Return | Janus Multi-sector vs. Federated Kaufmann Small |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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