Correlation Between Janus Asia and Pear Tree
Can any of the company-specific risk be diversified away by investing in both Janus Asia and Pear Tree 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 Pear Tree 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 Pear Tree Panagora, you can compare the effects of market volatilities on Janus Asia and Pear Tree 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 Pear Tree. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Asia and Pear Tree.
Diversification Opportunities for Janus Asia and Pear Tree
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between JANUS and Pear is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Janus Asia Equity and Pear Tree Panagora in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pear Tree Panagora 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 Pear Tree. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pear Tree Panagora has no effect on the direction of Janus Asia i.e., Janus Asia and Pear Tree go up and down completely randomly.
Pair Corralation between Janus Asia and Pear Tree
If you would invest 2,004 in Pear Tree Panagora on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Pear Tree Panagora or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Janus Asia Equity vs. Pear Tree Panagora
Performance |
| Timeline |
| Janus Asia Equity |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Pear Tree Panagora |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Janus Asia and Pear Tree Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus Asia and Pear Tree
The main advantage of trading using opposite Janus Asia and Pear Tree positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus Asia position performs unexpectedly, Pear Tree 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 Pear Tree will offset losses from the drop in Pear Tree'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 |
| Pear Tree vs. Pear Tree Polaris | Pear Tree vs. Acadian Emerging Markets | Pear Tree vs. Driehaus Emerging Markets | Pear Tree vs. Emerging Markets Portfolio |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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