Correlation Between Janus Henderson and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Janus Henderson and Dow Jones 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 Janus Henderson and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Janus Henderson Global and Dow Jones Industrial, you can compare the effects of market volatilities on Janus Henderson and Dow Jones 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 Janus Henderson with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Henderson and Dow Jones.
Diversification Opportunities for Janus Henderson and Dow Jones
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Janus and Dow is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Janus Henderson Global and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Janus Henderson 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 Janus Henderson Global are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Janus Henderson i.e., Janus Henderson and Dow Jones go up and down completely randomly.
Pair Corralation between Janus Henderson and Dow Jones
Assuming the 90 days trading horizon Janus Henderson Global is expected to generate 1.18 times more return on investment than Dow Jones. However, Janus Henderson is 1.18 times more volatile than Dow Jones Industrial. It trades about 0.32 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.01 per unit of risk. If you would invest 3,533 in Janus Henderson Global on September 12, 2024 and sell it today you would earn a total of 179.00 from holding Janus Henderson Global or generate 5.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Janus Henderson Global vs. Dow Jones Industrial
Performance |
| Timeline |
Janus Henderson and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Janus Henderson Global
Pair trading matchups for Janus Henderson
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Janus Henderson and Dow Jones
The main advantage of trading using opposite Janus Henderson and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus Henderson position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Janus Henderson vs. Janus Henderson Sustainable | Janus Henderson vs. Janus Henderson Net | Janus Henderson vs. iShares MSCI Emerging | Janus Henderson vs. Global X Hydrogen |
| Dow Jones vs. Aeye Inc | Dow Jones vs. Gentex | Dow Jones vs. Marine Products | Dow Jones vs. CarsalesCom Ltd ADR |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |