Correlation Between Janus High-yield and Cambiar Smid
Can any of the company-specific risk be diversified away by investing in both Janus High-yield and Cambiar Smid 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-yield and Cambiar Smid 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 Cambiar Smid Fund, you can compare the effects of market volatilities on Janus High-yield and Cambiar Smid 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-yield with a short position of Cambiar Smid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus High-yield and Cambiar Smid.
Diversification Opportunities for Janus High-yield and Cambiar Smid
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Janus and Cambiar is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Janus High Yield Fund and Cambiar Smid Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambiar Smid and Janus High-yield 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 Cambiar Smid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambiar Smid has no effect on the direction of Janus High-yield i.e., Janus High-yield and Cambiar Smid go up and down completely randomly.
Pair Corralation between Janus High-yield and Cambiar Smid
Assuming the 90 days horizon Janus High-yield is expected to generate 1.19 times less return on investment than Cambiar Smid. But when comparing it to its historical volatility, Janus High Yield Fund is 2.52 times less risky than Cambiar Smid. It trades about 0.11 of its potential returns per unit of risk. Cambiar Smid Fund is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,125 in Cambiar Smid Fund on August 30, 2024 and sell it today you would earn a total of 464.00 from holding Cambiar Smid Fund or generate 21.84% 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. Cambiar Smid Fund
Performance |
| Timeline |
| Janus High Yield |
| Cambiar Smid |
Janus High-yield and Cambiar Smid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus High-yield and Cambiar Smid
The main advantage of trading using opposite Janus High-yield and Cambiar Smid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus High-yield position performs unexpectedly, Cambiar Smid 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 Cambiar Smid will offset losses from the drop in Cambiar Smid's long position.| Janus High-yield vs. Deutsche Floating Rate | Janus High-yield vs. Pimco Short Asset | Janus High-yield vs. High Yield Fund | Janus High-yield vs. Harding Loevner Frontier |
| Cambiar Smid vs. T Rowe Price | Cambiar Smid vs. Astor Longshort Fund | Cambiar Smid vs. Ambrus Core Bond | Cambiar Smid vs. Bbh Intermediate Municipal |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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