Correlation Between Janus Global and Mainstay Epoch
Can any of the company-specific risk be diversified away by investing in both Janus Global and Mainstay Epoch 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 Mainstay Epoch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Janus Global Technology and Mainstay Epoch Small, you can compare the effects of market volatilities on Janus Global and Mainstay Epoch 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 Mainstay Epoch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Global and Mainstay Epoch.
Diversification Opportunities for Janus Global and Mainstay Epoch
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Janus and Mainstay is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Janus Global Technology and Mainstay Epoch Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Epoch Small 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 Technology are associated (or correlated) with Mainstay Epoch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Epoch Small has no effect on the direction of Janus Global i.e., Janus Global and Mainstay Epoch go up and down completely randomly.
Pair Corralation between Janus Global and Mainstay Epoch
Assuming the 90 days horizon Janus Global is expected to generate 3.29 times less return on investment than Mainstay Epoch. But when comparing it to its historical volatility, Janus Global Technology is 1.49 times less risky than Mainstay Epoch. It trades about 0.13 of its potential returns per unit of risk. Mainstay Epoch Small is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 2,357 in Mainstay Epoch Small on August 28, 2024 and sell it today you would earn a total of 272.00 from holding Mainstay Epoch Small or generate 11.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Janus Global Technology vs. Mainstay Epoch Small
Performance |
| Timeline |
| Janus Global Technology |
| Mainstay Epoch Small |
Janus Global and Mainstay Epoch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus Global and Mainstay Epoch
The main advantage of trading using opposite Janus Global and Mainstay Epoch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus Global position performs unexpectedly, Mainstay Epoch 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 Mainstay Epoch will offset losses from the drop in Mainstay Epoch's long position.| Janus Global vs. Janus Global Life | Janus Global vs. Janus Research Fund | Janus Global vs. Janus Enterprise Fund | Janus Global vs. Janus Trarian Fund |
| Mainstay Epoch vs. Pimco High Yield | Mainstay Epoch vs. Jpmorgan High Yield | Mainstay Epoch vs. Gmo High Yield | Mainstay Epoch vs. Multi Manager High Yield |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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