Correlation Between Voya High and Janus High
Can any of the company-specific risk be diversified away by investing in both Voya High and Janus High 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 Voya High and Janus High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya High Yield and Janus High Yield Fund, you can compare the effects of market volatilities on Voya High and Janus High 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 Voya High with a short position of Janus High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya High and Janus High.
Diversification Opportunities for Voya High and Janus High
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Voya and Janus is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Voya High Yield and Janus High Yield Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus High Yield and Voya High 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 Voya High Yield are associated (or correlated) with Janus High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus High Yield has no effect on the direction of Voya High i.e., Voya High and Janus High go up and down completely randomly.
Pair Corralation between Voya High and Janus High
Assuming the 90 days horizon Voya High is expected to generate 1.16 times less return on investment than Janus High. But when comparing it to its historical volatility, Voya High Yield is 1.19 times less risky than Janus High. It trades about 0.16 of its potential returns per unit of risk. Janus High Yield Fund is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 641.00 in Janus High Yield Fund on September 12, 2024 and sell it today you would earn a total of 101.00 from holding Janus High Yield Fund or generate 15.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya High Yield vs. Janus High Yield Fund
Performance |
| Timeline |
| Voya High Yield |
| Janus High Yield |
Voya High and Janus High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya High and Janus High
The main advantage of trading using opposite Voya High and Janus High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya High position performs unexpectedly, Janus High 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 High will offset losses from the drop in Janus High's long position.| Voya High vs. SCOR PK | Voya High vs. Morningstar Unconstrained Allocation | Voya High vs. Via Renewables | Voya High vs. Bondbloxx ETF Trust |
| Janus High vs. Columbia Income Opportunities | Janus High vs. Federated Bond Fund | Janus High vs. Invesco Global Real | Janus High vs. John Hancock Bond |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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