Correlation Between Janus Global and American Funds
Can any of the company-specific risk be diversified away by investing in both Janus Global and American Funds 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 Global and American Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Janus Global Research and American Funds New, you can compare the effects of market volatilities on Janus Global and American Funds 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 Global with a short position of American Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Global and American Funds.
Diversification Opportunities for Janus Global and American Funds
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Janus and American is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Janus Global Research and American Funds New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds New and Janus Global 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 Global Research are associated (or correlated) with American Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Funds New has no effect on the direction of Janus Global i.e., Janus Global and American Funds go up and down completely randomly.
Pair Corralation between Janus Global and American Funds
Assuming the 90 days horizon Janus Global Research is expected to generate 1.05 times more return on investment than American Funds. However, Janus Global is 1.05 times more volatile than American Funds New. It trades about 0.27 of its potential returns per unit of risk. American Funds New is currently generating about 0.21 per unit of risk. If you would invest 11,748 in Janus Global Research on September 4, 2024 and sell it today you would earn a total of 462.00 from holding Janus Global Research or generate 3.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Janus Global Research vs. American Funds New
Performance |
| Timeline |
| Janus Global Research |
| American Funds New |
Janus Global and American Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus Global and American Funds
The main advantage of trading using opposite Janus Global and American Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus Global position performs unexpectedly, American Funds 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 American Funds will offset losses from the drop in American Funds' long position.| Janus Global vs. Janus Enterprise Fund | Janus Global vs. Janus Global Research | Janus Global vs. Janus Overseas Fund | Janus Global vs. Perkins Small Cap |
| American Funds vs. Aqr Managed Futures | American Funds vs. Guidepath Managed Futures | American Funds vs. Ab Bond Inflation | American Funds vs. Tiaa Cref Inflation Linked Bond |
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.
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