Correlation Between IShares Russell and Janus Henderson
Can any of the company-specific risk be diversified away by investing in both IShares 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 IShares 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 iShares Russell Mid Cap and Janus Henderson SmallMid, you can compare the effects of market volatilities on IShares 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 IShares Russell with a short position of Janus Henderson. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Russell and Janus Henderson.
Diversification Opportunities for IShares Russell and Janus Henderson
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and Janus is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding iShares Russell Mid Cap and Janus Henderson SmallMid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Henderson SmallMid and IShares 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 iShares Russell Mid Cap 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 SmallMid has no effect on the direction of IShares Russell i.e., IShares Russell and Janus Henderson go up and down completely randomly.
Pair Corralation between IShares Russell and Janus Henderson
Considering the 90-day investment horizon iShares Russell Mid Cap is expected to generate 0.83 times more return on investment than Janus Henderson. However, iShares Russell Mid Cap is 1.2 times less risky than Janus Henderson. It trades about 0.14 of its potential returns per unit of risk. Janus Henderson SmallMid is currently generating about 0.11 per unit of risk. If you would invest 9,545 in iShares Russell Mid Cap on August 24, 2024 and sell it today you would earn a total of 3,684 from holding iShares Russell Mid Cap or generate 38.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Russell Mid Cap vs. Janus Henderson SmallMid
Performance |
| Timeline |
| iShares Russell Mid |
| Janus Henderson SmallMid |
IShares Russell and Janus Henderson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Russell and Janus Henderson
The main advantage of trading using opposite IShares Russell and Janus Henderson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares 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.| IShares Russell vs. JPMorgan Fundamental Data | IShares Russell vs. Vanguard Mid Cap Index | IShares Russell vs. SPDR SP 400 | IShares Russell vs. SPDR SP 400 |
| Janus Henderson vs. First Trust Small | Janus Henderson vs. First Trust Mid | Janus Henderson vs. First Trust Small | Janus Henderson vs. First Trust Multi |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Stocks Directory Find actively traded stocks across global markets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |