Correlation Between Janus High and Federated High
Can any of the company-specific risk be diversified away by investing in both Janus High and Federated High 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 High and Federated High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Janus High Yield Fund and Federated High Yield, you can compare the effects of market volatilities on Janus High and Federated High 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 High with a short position of Federated High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus High and Federated High.
Diversification Opportunities for Janus High and Federated High
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Janus and Federated is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Janus High Yield Fund and Federated High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated High Yield and Janus High 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 High Yield Fund are associated (or correlated) with Federated High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated High Yield has no effect on the direction of Janus High i.e., Janus High and Federated High go up and down completely randomly.
Pair Corralation between Janus High and Federated High
Assuming the 90 days horizon Janus High is expected to generate 1.43 times less return on investment than Federated High. But when comparing it to its historical volatility, Janus High Yield Fund is 1.07 times less risky than Federated High. It trades about 0.16 of its potential returns per unit of risk. Federated High Yield is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 639.00 in Federated High Yield on August 27, 2024 and sell it today you would earn a total of 5.00 from holding Federated High Yield or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Janus High Yield Fund vs. Federated High Yield
Performance |
| Timeline |
| Janus High Yield |
| Federated High Yield |
Janus High and Federated High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus High and Federated High
The main advantage of trading using opposite Janus High and Federated High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus High position performs unexpectedly, Federated High 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 Federated High will offset losses from the drop in Federated High's long position.| Janus High vs. Janus Research Fund | Janus High vs. Janus Research Fund | Janus High vs. Janus Research Fund | Janus High vs. Janus Research Fund |
| Federated High vs. Janus High Yield Fund | Federated High vs. Northeast Investors Trust | Federated High vs. High Yield Fund Investor | Federated High vs. Ab Sustainable Thematic |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |