Correlation Between Janus Contrarian and Swan Defined
Can any of the company-specific risk be diversified away by investing in both Janus Contrarian and Swan Defined 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 Swan Defined 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 Swan Defined Risk, you can compare the effects of market volatilities on Janus Contrarian and Swan Defined 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 Swan Defined. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Contrarian and Swan Defined.
Diversification Opportunities for Janus Contrarian and Swan Defined
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Janus and Swan is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Janus Trarian Fund and Swan Defined Risk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swan Defined Risk 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 Swan Defined. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swan Defined Risk has no effect on the direction of Janus Contrarian i.e., Janus Contrarian and Swan Defined go up and down completely randomly.
Pair Corralation between Janus Contrarian and Swan Defined
Assuming the 90 days horizon Janus Trarian Fund is expected to generate 1.87 times more return on investment than Swan Defined. However, Janus Contrarian is 1.87 times more volatile than Swan Defined Risk. It trades about 0.06 of its potential returns per unit of risk. Swan Defined Risk is currently generating about 0.02 per unit of risk. If you would invest 2,325 in Janus Trarian Fund on August 27, 2024 and sell it today you would earn a total of 908.00 from holding Janus Trarian Fund or generate 39.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Janus Trarian Fund vs. Swan Defined Risk
Performance |
| Timeline |
| Janus Contrarian |
| Swan Defined Risk |
Janus Contrarian and Swan Defined Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus Contrarian and Swan Defined
The main advantage of trading using opposite Janus Contrarian and Swan Defined positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus Contrarian position performs unexpectedly, Swan Defined 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 Swan Defined will offset losses from the drop in Swan Defined'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 |
| Swan Defined vs. Swan Defined Risk | Swan Defined vs. Swan Defined Risk | Swan Defined vs. Swan Defined Risk | Swan Defined vs. Swan Defined Risk |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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