Correlation Between Janus Balanced and Akre Focus
Can any of the company-specific risk be diversified away by investing in both Janus Balanced and Akre Focus 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 Balanced and Akre Focus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Janus Balanced Fund and Akre Focus Fund, you can compare the effects of market volatilities on Janus Balanced and Akre Focus 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 Balanced with a short position of Akre Focus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Balanced and Akre Focus.
Diversification Opportunities for Janus Balanced and Akre Focus
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Janus and Akre is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Janus Balanced Fund and Akre Focus Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akre Focus Fund and Janus Balanced 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 Balanced Fund are associated (or correlated) with Akre Focus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akre Focus Fund has no effect on the direction of Janus Balanced i.e., Janus Balanced and Akre Focus go up and down completely randomly.
Pair Corralation between Janus Balanced and Akre Focus
Assuming the 90 days horizon Janus Balanced is expected to generate 2.23 times less return on investment than Akre Focus. But when comparing it to its historical volatility, Janus Balanced Fund is 1.47 times less risky than Akre Focus. It trades about 0.37 of its potential returns per unit of risk. Akre Focus Fund is currently generating about 0.56 of returns per unit of risk over similar time horizon. If you would invest 6,936 in Akre Focus Fund on September 1, 2024 and sell it today you would earn a total of 579.00 from holding Akre Focus Fund or generate 8.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Janus Balanced Fund vs. Akre Focus Fund
Performance |
| Timeline |
| Janus Balanced |
| Akre Focus Fund |
Janus Balanced and Akre Focus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus Balanced and Akre Focus
The main advantage of trading using opposite Janus Balanced and Akre Focus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus Balanced position performs unexpectedly, Akre Focus 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 Akre Focus will offset losses from the drop in Akre Focus' long position.| Janus Balanced vs. American Balanced Fund | Janus Balanced vs. First Eagle Global | Janus Balanced vs. Janus Enterprise Fund | Janus Balanced vs. The Hartford Balanced |
| Akre Focus vs. Osterweis Strategic Income | Akre Focus vs. Doubleline Low Duration | Akre Focus vs. Doubleline Total Return | Akre Focus vs. Vanguard Dividend Growth |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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