Correlation Between Janus International and Masco

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Can any of the company-specific risk be diversified away by investing in both Janus International and Masco 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 International and Masco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Janus International Group and Masco, you can compare the effects of market volatilities on Janus International and Masco 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 International with a short position of Masco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus International and Masco.

Diversification Opportunities for Janus International and Masco

JanusMascoDiversified AwayJanusMascoDiversified Away100%
0.26
  Correlation Coefficient

Modest diversification

The 3 months correlation between Janus and Masco is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Janus International Group and Masco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Masco and Janus International 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 International Group are associated (or correlated) with Masco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Masco has no effect on the direction of Janus International i.e., Janus International and Masco go up and down completely randomly.

Pair Corralation between Janus International and Masco

Considering the 90-day investment horizon Janus International Group is expected to generate 1.39 times more return on investment than Masco. However, Janus International is 1.39 times more volatile than Masco. It trades about -0.03 of its potential returns per unit of risk. Masco is currently generating about -0.17 per unit of risk. If you would invest  818.00  in Janus International Group on November 29, 2024 and sell it today you would lose (12.00) from holding Janus International Group or give up 1.47% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Janus International Group  vs.  Masco

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -5051015
JavaScript chart by amCharts 3.21.15JBI MAS
       Timeline  
Janus International 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Janus International Group are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak fundamental drivers, Janus International may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb77.588.5
Masco 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Masco has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Masco is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb727476788082

Janus International and Masco Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-7.48-5.61-3.73-1.850.01.863.835.797.759.72 0.050.100.15
JavaScript chart by amCharts 3.21.15JBI MAS
       Returns  

Pair Trading with Janus International and Masco

The main advantage of trading using opposite Janus International and Masco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus International position performs unexpectedly, Masco 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 Masco will offset losses from the drop in Masco's long position.
The idea behind Janus International Group and Masco pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.

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