Correlation Between Janus Triton and Emerald Growth
Can any of the company-specific risk be diversified away by investing in both Janus Triton and Emerald Growth 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 Triton and Emerald Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Janus Triton Fund and Emerald Growth Fund, you can compare the effects of market volatilities on Janus Triton and Emerald Growth 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 Triton with a short position of Emerald Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Triton and Emerald Growth.
Diversification Opportunities for Janus Triton and Emerald Growth
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Janus and Emerald is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Janus Triton Fund and Emerald Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerald Growth and Janus Triton 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 Triton Fund are associated (or correlated) with Emerald Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerald Growth has no effect on the direction of Janus Triton i.e., Janus Triton and Emerald Growth go up and down completely randomly.
Pair Corralation between Janus Triton and Emerald Growth
Assuming the 90 days horizon Janus Triton is expected to generate 1.56 times less return on investment than Emerald Growth. But when comparing it to its historical volatility, Janus Triton Fund is 1.51 times less risky than Emerald Growth. It trades about 0.31 of its potential returns per unit of risk. Emerald Growth Fund is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 2,654 in Emerald Growth Fund on September 1, 2024 and sell it today you would earn a total of 315.00 from holding Emerald Growth Fund or generate 11.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Janus Triton Fund vs. Emerald Growth Fund
Performance |
| Timeline |
| Janus Triton |
| Emerald Growth |
Janus Triton and Emerald Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus Triton and Emerald Growth
The main advantage of trading using opposite Janus Triton and Emerald Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus Triton position performs unexpectedly, Emerald Growth 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 Emerald Growth will offset losses from the drop in Emerald Growth's long position.| Janus Triton vs. Blackrock Sp 500 | Janus Triton vs. Janus Enterprise Fund | Janus Triton vs. Columbia Small Cap | Janus Triton vs. John Hancock Disciplined |
| Emerald Growth vs. Emerald Banking And | Emerald Growth vs. Emerald Growth Fund | Emerald Growth vs. Emerald Insights Fund | Emerald Growth vs. Emerald Insights Fund |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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