Correlation Between The Hartford and Janus Research
Can any of the company-specific risk be diversified away by investing in both The Hartford and Janus Research 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 The Hartford and Janus Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hartford Growth and Janus Research Fund, you can compare the effects of market volatilities on The Hartford and Janus Research 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 The Hartford with a short position of Janus Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Janus Research.
Diversification Opportunities for The Hartford and Janus Research
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between The and Janus is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Growth and Janus Research Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Research and The Hartford 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 The Hartford Growth are associated (or correlated) with Janus Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Research has no effect on the direction of The Hartford i.e., The Hartford and Janus Research go up and down completely randomly.
Pair Corralation between The Hartford and Janus Research
Assuming the 90 days horizon The Hartford Growth is expected to generate 1.14 times more return on investment than Janus Research. However, The Hartford is 1.14 times more volatile than Janus Research Fund. It trades about 0.11 of its potential returns per unit of risk. Janus Research Fund is currently generating about 0.11 per unit of risk. If you would invest 3,705 in The Hartford Growth on August 31, 2024 and sell it today you would earn a total of 2,148 from holding The Hartford Growth or generate 57.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Growth vs. Janus Research Fund
Performance |
| Timeline |
| Hartford Growth |
| Janus Research |
The Hartford and Janus Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and Janus Research
The main advantage of trading using opposite The Hartford and Janus Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, Janus Research 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 Research will offset losses from the drop in Janus Research's long position.| The Hartford vs. Europacific Growth Fund | The Hartford vs. Washington Mutual Investors | The Hartford vs. Capital World Growth | The Hartford vs. HUMANA INC |
| Janus Research vs. Janus Research Fund | Janus Research vs. Janus Global Life | Janus Research vs. Janus Forty Fund | Janus Research vs. Janus Enterprise 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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