Correlation Between Janus High and Emerging Markets
Can any of the company-specific risk be diversified away by investing in both Janus High and Emerging Markets 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 Emerging Markets 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 Emerging Markets Fund, you can compare the effects of market volatilities on Janus High and Emerging Markets 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 Emerging Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus High and Emerging Markets.
Diversification Opportunities for Janus High and Emerging Markets
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Janus and Emerging is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Janus High Yield Fund and Emerging Markets Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerging Markets 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 Emerging Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerging Markets has no effect on the direction of Janus High i.e., Janus High and Emerging Markets go up and down completely randomly.
Pair Corralation between Janus High and Emerging Markets
Assuming the 90 days horizon Janus High is expected to generate 4.23 times less return on investment than Emerging Markets. But when comparing it to its historical volatility, Janus High Yield Fund is 3.94 times less risky than Emerging Markets. It trades about 0.13 of its potential returns per unit of risk. Emerging Markets Fund is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,644 in Emerging Markets Fund on September 14, 2024 and sell it today you would earn a total of 28.00 from holding Emerging Markets Fund or generate 1.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Janus High Yield Fund vs. Emerging Markets Fund
Performance |
| Timeline |
| Janus High Yield |
| Emerging Markets |
Janus High and Emerging Markets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus High and Emerging Markets
The main advantage of trading using opposite Janus High and Emerging Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus High position performs unexpectedly, Emerging Markets 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 Emerging Markets will offset losses from the drop in Emerging Markets' 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 |
| Emerging Markets vs. Ep Emerging Markets | Emerging Markets vs. Siit Emerging Markets | Emerging Markets vs. Ab All Market | Emerging Markets vs. Locorr Market Trend |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |