Correlation Between Janus High and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Janus High and Massmutual Select 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 Massmutual Select 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 Massmutual Select Small, you can compare the effects of market volatilities on Janus High and Massmutual Select 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 Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus High and Massmutual Select.
Diversification Opportunities for Janus High and Massmutual Select
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Janus and Massmutual is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Janus High Yield Fund and Massmutual Select Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select Small 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 Massmutual Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massmutual Select Small has no effect on the direction of Janus High i.e., Janus High and Massmutual Select go up and down completely randomly.
Pair Corralation between Janus High and Massmutual Select
Assuming the 90 days horizon Janus High Yield Fund is expected to generate 0.21 times more return on investment than Massmutual Select. However, Janus High Yield Fund is 4.75 times less risky than Massmutual Select. It trades about 0.0 of its potential returns per unit of risk. Massmutual Select Small is currently generating about -0.02 per unit of risk. If you would invest 741.00 in Janus High Yield Fund on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Janus High Yield Fund or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Janus High Yield Fund vs. Massmutual Select Small
Performance |
| Timeline |
| Janus High Yield |
| Massmutual Select Small |
Janus High and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus High and Massmutual Select
The main advantage of trading using opposite Janus High and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus High position performs unexpectedly, Massmutual Select 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 Massmutual Select will offset losses from the drop in Massmutual Select's long position.| Janus High vs. Columbia Income Opportunities | Janus High vs. Federated Bond Fund | Janus High vs. Invesco Global Real | Janus High vs. John Hancock Bond |
| Massmutual Select vs. Janus High Yield Fund | Massmutual Select vs. T Rowe Price | Massmutual Select vs. Payden High Income | Massmutual Select vs. Voya 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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