Correlation Between Janus High-yield and Commodities Strategy
Can any of the company-specific risk be diversified away by investing in both Janus High-yield and Commodities Strategy 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 Commodities Strategy 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 Commodities Strategy Fund, you can compare the effects of market volatilities on Janus High-yield and Commodities Strategy 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 Commodities Strategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus High-yield and Commodities Strategy.
Diversification Opportunities for Janus High-yield and Commodities Strategy
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Janus and Commodities is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Janus High Yield Fund and Commodities Strategy Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commodities Strategy 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 Commodities Strategy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commodities Strategy has no effect on the direction of Janus High-yield i.e., Janus High-yield and Commodities Strategy go up and down completely randomly.
Pair Corralation between Janus High-yield and Commodities Strategy
Assuming the 90 days horizon Janus High Yield Fund is expected to generate 0.22 times more return on investment than Commodities Strategy. However, Janus High Yield Fund is 4.46 times less risky than Commodities Strategy. It trades about 0.17 of its potential returns per unit of risk. Commodities Strategy Fund is currently generating about -0.04 per unit of risk. If you would invest 736.00 in Janus High Yield Fund on September 5, 2024 and sell it today you would earn a total of 5.00 from holding Janus High Yield Fund or generate 0.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Janus High Yield Fund vs. Commodities Strategy Fund
Performance |
| Timeline |
| Janus High Yield |
| Commodities Strategy |
Janus High-yield and Commodities Strategy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus High-yield and Commodities Strategy
The main advantage of trading using opposite Janus High-yield and Commodities Strategy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus High-yield position performs unexpectedly, Commodities Strategy 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 Commodities Strategy will offset losses from the drop in Commodities Strategy's long position.| Janus High-yield vs. Commodities Strategy Fund | Janus High-yield vs. Templeton Emerging Markets | Janus High-yield vs. Transamerica Emerging Markets | Janus High-yield vs. Black Oak Emerging |
| Commodities Strategy vs. Basic Materials Fund | Commodities Strategy vs. Energy Services Fund | Commodities Strategy vs. Energy Fund Investor | Commodities Strategy vs. Real Estate Fund |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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