Correlation Between Janus High and Franklin Government
Can any of the company-specific risk be diversified away by investing in both Janus High and Franklin Government 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 Franklin Government 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 Franklin Government Money, you can compare the effects of market volatilities on Janus High and Franklin Government 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 Franklin Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus High and Franklin Government.
Diversification Opportunities for Janus High and Franklin Government
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Janus and Franklin is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Janus High Yield Fund and Franklin Government Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Government Money 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 Franklin Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Government Money has no effect on the direction of Janus High i.e., Janus High and Franklin Government go up and down completely randomly.
Pair Corralation between Janus High and Franklin Government
If you would invest 735.00 in Janus High Yield Fund on September 13, 2024 and sell it today you would earn a total of 6.00 from holding Janus High Yield Fund or generate 0.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Janus High Yield Fund vs. Franklin Government Money
Performance |
| Timeline |
| Janus High Yield |
| Franklin Government Money |
Janus High and Franklin Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus High and Franklin Government
The main advantage of trading using opposite Janus High and Franklin Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus High position performs unexpectedly, Franklin Government 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 Franklin Government will offset losses from the drop in Franklin Government's long position.| Janus High vs. Columbia Income Opportunities | Janus High vs. Eaton Vance Floating Rate | Janus High vs. Aquagold International | Janus High vs. Morningstar Unconstrained Allocation |
| Franklin Government vs. Jpmorgan High Yield | Franklin Government vs. Janus High Yield Fund | Franklin Government vs. Gmo High Yield | Franklin Government vs. Guggenheim High Yield |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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