Correlation Between Lifestyle and Janus Henderson
Can any of the company-specific risk be diversified away by investing in both Lifestyle and Janus Henderson 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 Lifestyle and Janus Henderson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lifestyle Ii Moderate and Janus Henderson Research, you can compare the effects of market volatilities on Lifestyle and Janus Henderson 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 Lifestyle with a short position of Janus Henderson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifestyle and Janus Henderson.
Diversification Opportunities for Lifestyle and Janus Henderson
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lifestyle and Janus is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Lifestyle Ii Moderate and Janus Henderson Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Henderson Research and Lifestyle 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 Lifestyle Ii Moderate are associated (or correlated) with Janus Henderson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Henderson Research has no effect on the direction of Lifestyle i.e., Lifestyle and Janus Henderson go up and down completely randomly.
Pair Corralation between Lifestyle and Janus Henderson
Assuming the 90 days horizon Lifestyle Ii Moderate is expected to generate 0.33 times more return on investment than Janus Henderson. However, Lifestyle Ii Moderate is 3.05 times less risky than Janus Henderson. It trades about 0.13 of its potential returns per unit of risk. Janus Henderson Research is currently generating about -0.07 per unit of risk. If you would invest 1,098 in Lifestyle Ii Moderate on November 28, 2024 and sell it today you would earn a total of 10.00 from holding Lifestyle Ii Moderate or generate 0.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lifestyle Ii Moderate vs. Janus Henderson Research
Performance |
| Timeline |
| Lifestyle Ii Moderate |
| Janus Henderson Research |
Lifestyle and Janus Henderson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifestyle and Janus Henderson
The main advantage of trading using opposite Lifestyle and Janus Henderson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifestyle position performs unexpectedly, Janus Henderson 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 Janus Henderson will offset losses from the drop in Janus Henderson's long position.| Lifestyle vs. Aqr Global Macro | Lifestyle vs. Morningstar Global Income | Lifestyle vs. Dws Global Macro | Lifestyle vs. Doubleline Global Bond |
| Janus Henderson vs. Vanguard Growth Index | Janus Henderson vs. Glg Intl Small | Janus Henderson vs. Rbc Emerging Markets | Janus Henderson vs. Arrow Managed Futures |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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