Correlation Between Janus High and City National
Can any of the company-specific risk be diversified away by investing in both Janus High and City National 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 City National 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 City National Rochdale, you can compare the effects of market volatilities on Janus High and City National 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 City National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus High and City National.
Diversification Opportunities for Janus High and City National
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Janus and City is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Janus High Yield Fund and City National Rochdale in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City National Rochdale 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 City National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City National Rochdale has no effect on the direction of Janus High i.e., Janus High and City National go up and down completely randomly.
Pair Corralation between Janus High and City National
Assuming the 90 days horizon Janus High Yield Fund is expected to generate 1.36 times more return on investment than City National. However, Janus High is 1.36 times more volatile than City National Rochdale. It trades about 0.13 of its potential returns per unit of risk. City National Rochdale is currently generating about 0.05 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Janus High Yield Fund vs. City National Rochdale
Performance |
| Timeline |
| Janus High Yield |
| City National Rochdale |
Janus High and City National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus High and City National
The main advantage of trading using opposite Janus High and City National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus High position performs unexpectedly, City National 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 City National will offset losses from the drop in City National'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 |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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