Correlation Between Janus Henderson and Western Asset
Can any of the company-specific risk be diversified away by investing in both Janus Henderson and Western Asset 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 Western Asset 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 Western Asset E, you can compare the effects of market volatilities on Janus Henderson and Western Asset 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 Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Henderson and Western Asset.
Diversification Opportunities for Janus Henderson and Western Asset
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Janus and Western is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Janus Henderson Global and Western Asset E in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset E 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 Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset E has no effect on the direction of Janus Henderson i.e., Janus Henderson and Western Asset go up and down completely randomly.
Pair Corralation between Janus Henderson and Western Asset
Assuming the 90 days horizon Janus Henderson Global is expected to generate 1.72 times more return on investment than Western Asset. However, Janus Henderson is 1.72 times more volatile than Western Asset E. It trades about 0.08 of its potential returns per unit of risk. Western Asset E is currently generating about 0.03 per unit of risk. If you would invest 553.00 in Janus Henderson Global on November 3, 2024 and sell it today you would earn a total of 72.00 from holding Janus Henderson Global or generate 13.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Janus Henderson Global vs. Western Asset E
Performance |
| Timeline |
| Janus Henderson Global |
| Western Asset E |
Janus Henderson and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus Henderson and Western Asset
The main advantage of trading using opposite Janus Henderson and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus Henderson position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset's long position.| Janus Henderson vs. Baron Emerging Markets | Janus Henderson vs. Df Dent Midcap | Janus Henderson vs. The Brown Capital | Janus Henderson vs. Fidelity International Growth |
| Western Asset vs. Victory Rs Partners | Western Asset vs. Mutual Of America | Western Asset vs. Vanguard Small Cap Value | Western Asset vs. Heartland Value Plus |
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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