Correlation Between Janus Balanced and Dana Small
Can any of the company-specific risk be diversified away by investing in both Janus Balanced and Dana Small 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 Dana Small 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 Dana Small Cap, you can compare the effects of market volatilities on Janus Balanced and Dana Small 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 Dana Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Balanced and Dana Small.
Diversification Opportunities for Janus Balanced and Dana Small
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Janus and Dana is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Janus Balanced Fund and Dana Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dana Small Cap 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 Dana Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dana Small Cap has no effect on the direction of Janus Balanced i.e., Janus Balanced and Dana Small go up and down completely randomly.
Pair Corralation between Janus Balanced and Dana Small
Assuming the 90 days horizon Janus Balanced is expected to generate 1.37 times less return on investment than Dana Small. But when comparing it to its historical volatility, Janus Balanced Fund is 2.14 times less risky than Dana Small. It trades about 0.09 of its potential returns per unit of risk. Dana Small Cap is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,142 in Dana Small Cap on September 12, 2024 and sell it today you would earn a total of 410.00 from holding Dana Small Cap or generate 35.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Janus Balanced Fund vs. Dana Small Cap
Performance |
| Timeline |
| Janus Balanced |
| Dana Small Cap |
Janus Balanced and Dana Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus Balanced and Dana Small
The main advantage of trading using opposite Janus Balanced and Dana Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus Balanced position performs unexpectedly, Dana Small 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 Dana Small will offset losses from the drop in Dana Small's long position.| Janus Balanced vs. Total Return Fund | Janus Balanced vs. Blackrock Eq Dividend | Janus Balanced vs. Blackrock Gbl Alloc | Janus Balanced vs. Perkins Mid Cap |
| Dana Small vs. Hennessy Technology Fund | Dana Small vs. Janus Global Technology | Dana Small vs. Firsthand Technology Opportunities | Dana Small vs. Red Oak 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |