Correlation Between Janus Global and Emerging Markets
Can any of the company-specific risk be diversified away by investing in both Janus Global and Emerging Markets 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 Emerging Markets 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 Emerging Markets Portfolio, you can compare the effects of market volatilities on Janus Global and Emerging Markets 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 Emerging Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Global and Emerging Markets.
Diversification Opportunities for Janus Global and Emerging Markets
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between JANUS and Emerging is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Janus Global Technology and Emerging Markets Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerging Markets Por 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 Emerging Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerging Markets Por has no effect on the direction of Janus Global i.e., Janus Global and Emerging Markets go up and down completely randomly.
Pair Corralation between Janus Global and Emerging Markets
Assuming the 90 days horizon Janus Global Technology is expected to generate 1.32 times more return on investment than Emerging Markets. However, Janus Global is 1.32 times more volatile than Emerging Markets Portfolio. It trades about 0.05 of its potential returns per unit of risk. Emerging Markets Portfolio is currently generating about -0.22 per unit of risk. If you would invest 6,998 in Janus Global Technology on August 30, 2024 and sell it today you would earn a total of 73.00 from holding Janus Global Technology or generate 1.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Janus Global Technology vs. Emerging Markets Portfolio
Performance |
| Timeline |
| Janus Global Technology |
| Emerging Markets Por |
Janus Global and Emerging Markets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus Global and Emerging Markets
The main advantage of trading using opposite Janus Global and Emerging Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus Global position performs unexpectedly, Emerging Markets 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 Emerging Markets will offset losses from the drop in Emerging Markets' long position.| Janus Global vs. Janus Global Life | Janus Global vs. Blackrock Science Technology | Janus Global vs. Dreyfus Appreciation Fund | Janus Global vs. Victory Rs Small |
| Emerging Markets vs. Fidelity Advisor Technology | Emerging Markets vs. Janus Global Technology | Emerging Markets vs. Columbia Global Technology | Emerging Markets vs. Blackrock Science Technology |
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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