Correlation Between Janus Henderson and JPMorgan Fundamental
Can any of the company-specific risk be diversified away by investing in both Janus Henderson and JPMorgan Fundamental 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 JPMorgan Fundamental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Janus Henderson Mid and JPMorgan Fundamental Data, you can compare the effects of market volatilities on Janus Henderson and JPMorgan Fundamental 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 JPMorgan Fundamental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Henderson and JPMorgan Fundamental.
Diversification Opportunities for Janus Henderson and JPMorgan Fundamental
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Janus and JPMorgan is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Janus Henderson Mid and JPMorgan Fundamental Data in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan Fundamental Data 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 Mid are associated (or correlated) with JPMorgan Fundamental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMorgan Fundamental Data has no effect on the direction of Janus Henderson i.e., Janus Henderson and JPMorgan Fundamental go up and down completely randomly.
Pair Corralation between Janus Henderson and JPMorgan Fundamental
Given the investment horizon of 90 days Janus Henderson Mid is expected to generate 1.35 times more return on investment than JPMorgan Fundamental. However, Janus Henderson is 1.35 times more volatile than JPMorgan Fundamental Data. It trades about 0.2 of its potential returns per unit of risk. JPMorgan Fundamental Data is currently generating about 0.22 per unit of risk. If you would invest 2,837 in Janus Henderson Mid on October 23, 2024 and sell it today you would earn a total of 111.00 from holding Janus Henderson Mid or generate 3.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Janus Henderson Mid vs. JPMorgan Fundamental Data
Performance |
| Timeline |
| Janus Henderson Mid |
| JPMorgan Fundamental Data |
Janus Henderson and JPMorgan Fundamental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus Henderson and JPMorgan Fundamental
The main advantage of trading using opposite Janus Henderson and JPMorgan Fundamental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus Henderson position performs unexpectedly, JPMorgan Fundamental 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 JPMorgan Fundamental will offset losses from the drop in JPMorgan Fundamental's long position.| Janus Henderson vs. FT Vest Equity | Janus Henderson vs. Northern Lights | Janus Henderson vs. Dimensional International High | Janus Henderson vs. JPMorgan Fundamental Data |
| JPMorgan Fundamental vs. FT Vest Equity | JPMorgan Fundamental vs. Northern Lights | JPMorgan Fundamental vs. Dimensional International High | JPMorgan Fundamental vs. Matthews China Discovery |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |