Correlation Between Janus Henderson and US Treasury
Can any of the company-specific risk be diversified away by investing in both Janus Henderson and US Treasury 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 US Treasury 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 US Treasury 7, you can compare the effects of market volatilities on Janus Henderson and US Treasury 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 US Treasury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Henderson and US Treasury.
Diversification Opportunities for Janus Henderson and US Treasury
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Janus and USVN is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Janus Henderson Mortgage Backe and US Treasury 7 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Treasury 7 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 US Treasury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Treasury 7 has no effect on the direction of Janus Henderson i.e., Janus Henderson and US Treasury go up and down completely randomly.
Pair Corralation between Janus Henderson and US Treasury
Given the investment horizon of 90 days Janus Henderson Mortgage Backed is expected to generate 1.19 times more return on investment than US Treasury. However, Janus Henderson is 1.19 times more volatile than US Treasury 7. It trades about 0.08 of its potential returns per unit of risk. US Treasury 7 is currently generating about 0.02 per unit of risk. If you would invest 4,491 in Janus Henderson Mortgage Backed on August 28, 2024 and sell it today you would earn a total of 33.00 from holding Janus Henderson Mortgage Backed or generate 0.73% 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. US Treasury 7
Performance |
| Timeline |
| Janus Henderson Mort |
| US Treasury 7 |
Janus Henderson and US Treasury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus Henderson and US Treasury
The main advantage of trading using opposite Janus Henderson and US Treasury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus Henderson position performs unexpectedly, US Treasury 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 US Treasury will offset losses from the drop in US Treasury'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 |
| US Treasury vs. US Treasury 3 | US Treasury vs. US Treasury 30 | US Treasury vs. US Treasury 5 | US Treasury vs. US Treasury 20 |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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