Correlation Between Janus Asia and Perkins Select
Can any of the company-specific risk be diversified away by investing in both Janus Asia and Perkins Select 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 Asia and Perkins Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Janus Asia Equity and Perkins Select Value, you can compare the effects of market volatilities on Janus Asia and Perkins Select 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 Asia with a short position of Perkins Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Asia and Perkins Select.
Diversification Opportunities for Janus Asia and Perkins Select
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Janus and Perkins is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Janus Asia Equity and Perkins Select Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perkins Select Value and Janus Asia 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 Asia Equity are associated (or correlated) with Perkins Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perkins Select Value has no effect on the direction of Janus Asia i.e., Janus Asia and Perkins Select go up and down completely randomly.
Pair Corralation between Janus Asia and Perkins Select
Assuming the 90 days horizon Janus Asia is expected to generate 2.49 times less return on investment than Perkins Select. But when comparing it to its historical volatility, Janus Asia Equity is 1.24 times less risky than Perkins Select. It trades about 0.03 of its potential returns per unit of risk. Perkins Select Value is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,266 in Perkins Select Value on September 13, 2024 and sell it today you would earn a total of 422.00 from holding Perkins Select Value or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 80.97% |
| Values | Daily Returns |
Janus Asia Equity vs. Perkins Select Value
Performance |
| Timeline |
| Janus Asia Equity |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Perkins Select Value |
Janus Asia and Perkins Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus Asia and Perkins Select
The main advantage of trading using opposite Janus Asia and Perkins Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus Asia position performs unexpectedly, Perkins Select 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 Perkins Select will offset losses from the drop in Perkins Select's long position.| Janus Asia vs. T Rowe Price | Janus Asia vs. Perkins Select Value | Janus Asia vs. Guinness Atkinson Asia | Janus Asia vs. Fidelity Emerging Markets |
| Perkins Select vs. Janus Overseas Fund | Perkins Select vs. Janus Balanced Fund | Perkins Select vs. Perkins Mid Cap | Perkins Select vs. Janus Enterprise Fund |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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