Correlation Between Janus High and Highland Longshort
Can any of the company-specific risk be diversified away by investing in both Janus High and Highland Longshort 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 Highland Longshort 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 Highland Longshort Healthcare, you can compare the effects of market volatilities on Janus High and Highland Longshort 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 Highland Longshort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus High and Highland Longshort.
Diversification Opportunities for Janus High and Highland Longshort
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Janus and Highland is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Janus High Yield Fund and Highland Longshort Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highland Longshort 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 Highland Longshort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highland Longshort has no effect on the direction of Janus High i.e., Janus High and Highland Longshort go up and down completely randomly.
Pair Corralation between Janus High and Highland Longshort
Assuming the 90 days horizon Janus High Yield Fund is expected to generate 0.84 times more return on investment than Highland Longshort. However, Janus High Yield Fund is 1.19 times less risky than Highland Longshort. It trades about 0.13 of its potential returns per unit of risk. Highland Longshort Healthcare is currently generating about -0.17 per unit of risk. If you would invest 738.00 in Janus High Yield Fund on September 14, 2024 and sell it today you would earn a total of 3.00 from holding Janus High Yield Fund or generate 0.41% 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. Highland Longshort Healthcare
Performance |
| Timeline |
| Janus High Yield |
| Highland Longshort |
Janus High and Highland Longshort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus High and Highland Longshort
The main advantage of trading using opposite Janus High and Highland Longshort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus High position performs unexpectedly, Highland Longshort 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 Highland Longshort will offset losses from the drop in Highland Longshort'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 |
| Highland Longshort vs. Franklin Real Estate | Highland Longshort vs. Fidelity Real Estate | Highland Longshort vs. Goldman Sachs Real | Highland Longshort vs. Commonwealth Real Estate |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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