Correlation Between Janus High and Multi-manager High
Can any of the company-specific risk be diversified away by investing in both Janus High and Multi-manager High 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 High and Multi-manager High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Janus High Yield Fund and Multi Manager High Yield, you can compare the effects of market volatilities on Janus High and Multi-manager High 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 High with a short position of Multi-manager High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus High and Multi-manager High.
Diversification Opportunities for Janus High and Multi-manager High
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Janus and Multi-manager is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Janus High Yield Fund and Multi Manager High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Manager High and Janus High 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 High Yield Fund are associated (or correlated) with Multi-manager High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Manager High has no effect on the direction of Janus High i.e., Janus High and Multi-manager High go up and down completely randomly.
Pair Corralation between Janus High and Multi-manager High
Assuming the 90 days horizon Janus High is expected to generate 1.08 times less return on investment than Multi-manager High. In addition to that, Janus High is 1.35 times more volatile than Multi Manager High Yield. It trades about 0.1 of its total potential returns per unit of risk. Multi Manager High Yield is currently generating about 0.14 per unit of volatility. If you would invest 716.00 in Multi Manager High Yield on October 20, 2024 and sell it today you would earn a total of 127.00 from holding Multi Manager High Yield or generate 17.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Janus High Yield Fund vs. Multi Manager High Yield
Performance |
| Timeline |
| Janus High Yield |
| Multi Manager High |
Janus High and Multi-manager High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus High and Multi-manager High
The main advantage of trading using opposite Janus High and Multi-manager High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus High position performs unexpectedly, Multi-manager High 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 Multi-manager High will offset losses from the drop in Multi-manager High's long position.| Janus High vs. Janus Henderson High Yield | Janus High vs. Janus Flexible Bond | Janus High vs. Intech Managed Volatility | Janus High vs. Janus Trarian Fund |
| Multi-manager High vs. Allianzgi Health Sciences | Multi-manager High vs. Live Oak Health | Multi-manager High vs. Alger Health Sciences | Multi-manager High vs. Tekla Healthcare Investors |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |