Correlation Between Janus Enterprise and Henderson European
Can any of the company-specific risk be diversified away by investing in both Janus Enterprise and Henderson European 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 Enterprise and Henderson European into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Janus Enterprise Fund and Henderson European Focus, you can compare the effects of market volatilities on Janus Enterprise and Henderson European 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 Enterprise with a short position of Henderson European. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Enterprise and Henderson European.
Diversification Opportunities for Janus Enterprise and Henderson European
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Janus and Henderson is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Janus Enterprise Fund and Henderson European Focus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henderson European Focus and Janus Enterprise 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 Enterprise Fund are associated (or correlated) with Henderson European. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henderson European Focus has no effect on the direction of Janus Enterprise i.e., Janus Enterprise and Henderson European go up and down completely randomly.
Pair Corralation between Janus Enterprise and Henderson European
Assuming the 90 days horizon Janus Enterprise Fund is expected to generate 0.97 times more return on investment than Henderson European. However, Janus Enterprise Fund is 1.03 times less risky than Henderson European. It trades about 0.06 of its potential returns per unit of risk. Henderson European Focus is currently generating about 0.04 per unit of risk. If you would invest 12,964 in Janus Enterprise Fund on September 2, 2024 and sell it today you would earn a total of 2,761 from holding Janus Enterprise Fund or generate 21.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Janus Enterprise Fund vs. Henderson European Focus
Performance |
| Timeline |
| Janus Enterprise |
| Henderson European Focus |
Janus Enterprise and Henderson European Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus Enterprise and Henderson European
The main advantage of trading using opposite Janus Enterprise and Henderson European positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus Enterprise position performs unexpectedly, Henderson European 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 Henderson European will offset losses from the drop in Henderson European's long position.| Janus Enterprise vs. Janus Research Fund | Janus Enterprise vs. Janus Global Life | Janus Enterprise vs. Janus Global Technology | Janus Enterprise vs. Janus Global Research |
| Henderson European vs. Invesco European Small | Henderson European vs. Henderson European Focus | Henderson European vs. Invesco European Growth | Henderson European vs. Jpmorgan Intrepid European |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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