Correlation Between Janus Triton and Henderson European
Can any of the company-specific risk be diversified away by investing in both Janus Triton 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 Triton 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 Triton Fund and Henderson European Focus, you can compare the effects of market volatilities on Janus Triton 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 Triton with a short position of Henderson European. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Triton and Henderson European.
Diversification Opportunities for Janus Triton and Henderson European
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Janus and Henderson is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Janus Triton 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 Triton 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 Triton 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 Triton i.e., Janus Triton and Henderson European go up and down completely randomly.
Pair Corralation between Janus Triton and Henderson European
Assuming the 90 days horizon Janus Triton Fund is expected to generate 1.1 times more return on investment than Henderson European. However, Janus Triton is 1.1 times more volatile than Henderson European Focus. It trades about 0.05 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 2,535 in Janus Triton Fund on August 26, 2024 and sell it today you would earn a total of 475.00 from holding Janus Triton Fund or generate 18.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Janus Triton Fund vs. Henderson European Focus
Performance |
| Timeline |
| Janus Triton |
| Henderson European Focus |
Janus Triton and Henderson European Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus Triton and Henderson European
The main advantage of trading using opposite Janus Triton and Henderson European positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus Triton 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 Triton vs. Blackrock Sp 500 | Janus Triton vs. Janus Enterprise Fund | Janus Triton vs. Victory Sycamore Established | Janus Triton vs. Columbia Small Cap |
| 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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