Correlation Between Janus Contrarian and Janus Forty
Can any of the company-specific risk be diversified away by investing in both Janus Contrarian and Janus Forty 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 Contrarian and Janus Forty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Janus Trarian Fund and Janus Forty Fund, you can compare the effects of market volatilities on Janus Contrarian and Janus Forty 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 Contrarian with a short position of Janus Forty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Contrarian and Janus Forty.
Diversification Opportunities for Janus Contrarian and Janus Forty
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Janus and Janus is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Janus Trarian Fund and Janus Forty Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Forty Fund and Janus Contrarian 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 Trarian Fund are associated (or correlated) with Janus Forty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Forty Fund has no effect on the direction of Janus Contrarian i.e., Janus Contrarian and Janus Forty go up and down completely randomly.
Pair Corralation between Janus Contrarian and Janus Forty
Assuming the 90 days horizon Janus Trarian Fund is expected to generate 1.21 times more return on investment than Janus Forty. However, Janus Contrarian is 1.21 times more volatile than Janus Forty Fund. It trades about 0.14 of its potential returns per unit of risk. Janus Forty Fund is currently generating about 0.12 per unit of risk. If you would invest 3,120 in Janus Trarian Fund on August 28, 2024 and sell it today you would earn a total of 120.00 from holding Janus Trarian Fund or generate 3.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Janus Trarian Fund vs. Janus Forty Fund
Performance |
| Timeline |
| Janus Contrarian |
| Janus Forty Fund |
Janus Contrarian and Janus Forty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus Contrarian and Janus Forty
The main advantage of trading using opposite Janus Contrarian and Janus Forty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus Contrarian position performs unexpectedly, Janus Forty 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 Janus Forty will offset losses from the drop in Janus Forty's long position.| Janus Contrarian vs. Janus Forty Fund | Janus Contrarian vs. Janus Trarian Fund | Janus Contrarian vs. Janus Trarian Fund | Janus Contrarian vs. Janus Trarian Fund |
| Janus Forty vs. Janus Overseas Fund | Janus Forty vs. Janus Enterprise Fund | Janus Forty vs. The Hartford 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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