Correlation Between Janus Henderson and IShares GNMA
Can any of the company-specific risk be diversified away by investing in both Janus Henderson and IShares GNMA 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 Henderson and IShares GNMA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Janus Henderson Mortgage Backed and iShares GNMA Bond, you can compare the effects of market volatilities on Janus Henderson and IShares GNMA 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 Henderson with a short position of IShares GNMA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Henderson and IShares GNMA.
Diversification Opportunities for Janus Henderson and IShares GNMA
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Janus and IShares is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Janus Henderson Mortgage Backe and iShares GNMA Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares GNMA Bond and Janus Henderson 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 Henderson Mortgage Backed are associated (or correlated) with IShares GNMA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares GNMA Bond has no effect on the direction of Janus Henderson i.e., Janus Henderson and IShares GNMA go up and down completely randomly.
Pair Corralation between Janus Henderson and IShares GNMA
Given the investment horizon of 90 days Janus Henderson is expected to generate 1.12 times less return on investment than IShares GNMA. In addition to that, Janus Henderson is 1.1 times more volatile than iShares GNMA Bond. It trades about 0.05 of its total potential returns per unit of risk. iShares GNMA Bond is currently generating about 0.06 per unit of volatility. If you would invest 4,346 in iShares GNMA Bond on August 29, 2024 and sell it today you would earn a total of 23.00 from holding iShares GNMA Bond or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Janus Henderson Mortgage Backe vs. iShares GNMA Bond
Performance |
| Timeline |
| Janus Henderson Mort |
| iShares GNMA Bond |
Janus Henderson and IShares GNMA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus Henderson and IShares GNMA
The main advantage of trading using opposite Janus Henderson and IShares GNMA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus Henderson position performs unexpectedly, IShares GNMA 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 IShares GNMA will offset losses from the drop in IShares GNMA's long position.| Janus Henderson vs. SPDR Portfolio Mortgage | Janus Henderson vs. Janus Henderson Short | Janus Henderson vs. iShares CMBS ETF | Janus Henderson vs. Janus Detroit Street |
| IShares GNMA vs. Vanguard Long Term Treasury | IShares GNMA vs. Vanguard Short Term Treasury | IShares GNMA vs. Vanguard Intermediate Term Corporate | IShares GNMA vs. Vanguard Mortgage Backed Securities |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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