Correlation Between Proshares Russell and Janus Henderson
Can any of the company-specific risk be diversified away by investing in both Proshares Russell 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 Proshares Russell and Janus Henderson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Proshares Russell 2000 and Janus Henderson Corporate, you can compare the effects of market volatilities on Proshares Russell 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 Proshares Russell with a short position of Janus Henderson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Proshares Russell and Janus Henderson.
Diversification Opportunities for Proshares Russell and Janus Henderson
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Proshares and Janus is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Proshares Russell 2000 and Janus Henderson Corporate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Henderson Corporate and Proshares Russell 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 Proshares Russell 2000 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 Corporate has no effect on the direction of Proshares Russell i.e., Proshares Russell and Janus Henderson go up and down completely randomly.
Pair Corralation between Proshares Russell and Janus Henderson
Given the investment horizon of 90 days Proshares Russell 2000 is expected to generate 2.62 times more return on investment than Janus Henderson. However, Proshares Russell is 2.62 times more volatile than Janus Henderson Corporate. It trades about 0.18 of its potential returns per unit of risk. Janus Henderson Corporate is currently generating about 0.05 per unit of risk. If you would invest 3,913 in Proshares Russell 2000 on August 26, 2024 and sell it today you would earn a total of 434.00 from holding Proshares Russell 2000 or generate 11.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 11.67% |
| Values | Daily Returns |
Proshares Russell 2000 vs. Janus Henderson Corporate
Performance |
| Timeline |
| Proshares Russell 2000 |
| Janus Henderson Corporate |
Proshares Russell and Janus Henderson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Proshares Russell and Janus Henderson
The main advantage of trading using opposite Proshares Russell and Janus Henderson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Proshares Russell 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.| Proshares Russell vs. First Trust BuyWrite | Proshares Russell vs. Amplify CWP Enhanced | Proshares Russell vs. ProShares SP MidCap |
| Janus Henderson vs. Senstar Technologies | Janus Henderson vs. ImmuCell | Janus Henderson vs. Anika Therapeutics | Janus Henderson vs. Aquagold International |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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