Correlation Between Janus Forty and Thornburg International
Can any of the company-specific risk be diversified away by investing in both Janus Forty and Thornburg International 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 Forty and Thornburg International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Janus Forty Fund and Thornburg International Value, you can compare the effects of market volatilities on Janus Forty and Thornburg International 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 Forty with a short position of Thornburg International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Forty and Thornburg International.
Diversification Opportunities for Janus Forty and Thornburg International
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Janus and Thornburg is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Janus Forty Fund and Thornburg International Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thornburg International and Janus Forty 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 Forty Fund are associated (or correlated) with Thornburg International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thornburg International has no effect on the direction of Janus Forty i.e., Janus Forty and Thornburg International go up and down completely randomly.
Pair Corralation between Janus Forty and Thornburg International
Assuming the 90 days horizon Janus Forty Fund is expected to generate 1.4 times more return on investment than Thornburg International. However, Janus Forty is 1.4 times more volatile than Thornburg International Value. It trades about 0.09 of its potential returns per unit of risk. Thornburg International Value is currently generating about 0.05 per unit of risk. If you would invest 3,731 in Janus Forty Fund on August 25, 2024 and sell it today you would earn a total of 2,185 from holding Janus Forty Fund or generate 58.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Janus Forty Fund vs. Thornburg International Value
Performance |
| Timeline |
| Janus Forty Fund |
| Thornburg International |
Janus Forty and Thornburg International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus Forty and Thornburg International
The main advantage of trading using opposite Janus Forty and Thornburg International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus Forty position performs unexpectedly, Thornburg International 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 Thornburg International will offset losses from the drop in Thornburg International's long position.| Janus Forty vs. Janus Overseas Fund | Janus Forty vs. Janus Enterprise Fund | Janus Forty vs. The Hartford Growth | Janus Forty vs. Janus Forty Fund |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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