Correlation Between Janus Global and Janus Henderson
Can any of the company-specific risk be diversified away by investing in both Janus Global 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 Janus Global and Janus Henderson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Janus Global Life and Janus Henderson European, you can compare the effects of market volatilities on Janus Global 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 Janus Global with a short position of Janus Henderson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Global and Janus Henderson.
Diversification Opportunities for Janus Global and Janus Henderson
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Janus and Janus is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Janus Global Life and Janus Henderson European in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Henderson European and Janus Global 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 Global Life 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 European has no effect on the direction of Janus Global i.e., Janus Global and Janus Henderson go up and down completely randomly.
Pair Corralation between Janus Global and Janus Henderson
Assuming the 90 days horizon Janus Global Life is expected to generate 1.11 times more return on investment than Janus Henderson. However, Janus Global is 1.11 times more volatile than Janus Henderson European. It trades about -0.06 of its potential returns per unit of risk. Janus Henderson European is currently generating about -0.19 per unit of risk. If you would invest 7,819 in Janus Global Life on August 30, 2024 and sell it today you would lose (124.00) from holding Janus Global Life or give up 1.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Janus Global Life vs. Janus Henderson European
Performance |
| Timeline |
| Janus Global Life |
| Janus Henderson European |
Janus Global and Janus Henderson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus Global and Janus Henderson
The main advantage of trading using opposite Janus Global and Janus Henderson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus Global 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.| Janus Global vs. Janus Global Technology | Janus Global vs. Janus Enterprise Fund | Janus Global vs. Janus Research Fund | Janus Global vs. Janus Trarian Fund |
| Janus Henderson vs. Invesco European Small | Janus Henderson vs. Henderson European Focus | Janus Henderson vs. Invesco European Growth | 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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