Correlation Between Janus Global and Shelton Emerging
Can any of the company-specific risk be diversified away by investing in both Janus Global and Shelton Emerging 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 Shelton Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Janus Global Allocation and Shelton Emerging Markets, you can compare the effects of market volatilities on Janus Global and Shelton Emerging 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 Shelton Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Global and Shelton Emerging.
Diversification Opportunities for Janus Global and Shelton Emerging
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Janus and Shelton is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Janus Global Allocation and Shelton Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shelton Emerging Markets 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 Allocation are associated (or correlated) with Shelton Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shelton Emerging Markets has no effect on the direction of Janus Global i.e., Janus Global and Shelton Emerging go up and down completely randomly.
Pair Corralation between Janus Global and Shelton Emerging
Assuming the 90 days horizon Janus Global Allocation is expected to generate 0.68 times more return on investment than Shelton Emerging. However, Janus Global Allocation is 1.48 times less risky than Shelton Emerging. It trades about 0.08 of its potential returns per unit of risk. Shelton Emerging Markets is currently generating about -0.01 per unit of risk. If you would invest 1,349 in Janus Global Allocation on September 3, 2024 and sell it today you would earn a total of 89.00 from holding Janus Global Allocation or generate 6.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Janus Global Allocation vs. Shelton Emerging Markets
Performance |
| Timeline |
| Janus Global Allocation |
| Shelton Emerging Markets |
Janus Global and Shelton Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus Global and Shelton Emerging
The main advantage of trading using opposite Janus Global and Shelton Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus Global position performs unexpectedly, Shelton Emerging 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 Shelton Emerging will offset losses from the drop in Shelton Emerging's long position.| Janus Global vs. Ab Impact Municipal | Janus Global vs. Artisan High Income | Janus Global vs. Bbh Intermediate Municipal | Janus Global vs. Versatile Bond Portfolio |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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