Correlation Between Henderson European and Janus Henderson
Can any of the company-specific risk be diversified away by investing in both Henderson European 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 Henderson European and Janus Henderson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Henderson European Focus and Janus Henderson European, you can compare the effects of market volatilities on Henderson European 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 Henderson European with a short position of Janus Henderson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henderson European and Janus Henderson.
Diversification Opportunities for Henderson European and Janus Henderson
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Henderson and Janus is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Henderson European Focus and Janus Henderson European in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Henderson European and Henderson European 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 Henderson European Focus 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 European has no effect on the direction of Henderson European i.e., Henderson European and Janus Henderson go up and down completely randomly.
Pair Corralation between Henderson European and Janus Henderson
Assuming the 90 days horizon Henderson European Focus is expected to under-perform the Janus Henderson. But the mutual fund apears to be less risky and, when comparing its historical volatility, Henderson European Focus is 1.0 times less risky than Janus Henderson. The mutual fund trades about -0.19 of its potential returns per unit of risk. The Janus Henderson European is currently generating about -0.18 of returns per unit of risk over similar time horizon. If you would invest 4,869 in Janus Henderson European on August 26, 2024 and sell it today you would lose (345.00) from holding Janus Henderson European or give up 7.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Henderson European Focus vs. Janus Henderson European
Performance |
| Timeline |
| Henderson European Focus |
| Janus Henderson European |
Henderson European and Janus Henderson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henderson European and Janus Henderson
The main advantage of trading using opposite Henderson European and Janus Henderson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henderson European 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.| Henderson European vs. Janus Henderson European | Henderson European vs. Janus Henderson European | Henderson European vs. Janus Research Fund | Henderson European vs. Janus Research Fund |
| Janus Henderson vs. Janus Henderson European | Janus Henderson vs. Janus Research Fund | Janus Henderson vs. Janus Research Fund | Janus Henderson 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |