Correlation Between Janus Investment and Chase Growth
Can any of the company-specific risk be diversified away by investing in both Janus Investment and Chase Growth 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 Investment and Chase Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Janus Investment and Chase Growth Fund, you can compare the effects of market volatilities on Janus Investment and Chase Growth 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 Investment with a short position of Chase Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Investment and Chase Growth.
Diversification Opportunities for Janus Investment and Chase Growth
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Janus and Chase is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Janus Investment and Chase Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chase Growth and Janus Investment 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 Investment are associated (or correlated) with Chase Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chase Growth has no effect on the direction of Janus Investment i.e., Janus Investment and Chase Growth go up and down completely randomly.
Pair Corralation between Janus Investment and Chase Growth
Assuming the 90 days horizon Janus Investment is expected to generate 3.95 times less return on investment than Chase Growth. But when comparing it to its historical volatility, Janus Investment is 9.54 times less risky than Chase Growth. It trades about 0.13 of its potential returns per unit of risk. Chase Growth Fund is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,303 in Chase Growth Fund on September 12, 2024 and sell it today you would earn a total of 314.00 from holding Chase Growth Fund or generate 24.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Janus Investment vs. Chase Growth Fund
Performance |
| Timeline |
| Janus Investment |
| Chase Growth |
Janus Investment and Chase Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus Investment and Chase Growth
The main advantage of trading using opposite Janus Investment and Chase Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus Investment position performs unexpectedly, Chase Growth 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 Chase Growth will offset losses from the drop in Chase Growth's long position.| Janus Investment vs. Fidelity Small Cap | Janus Investment vs. Pace Smallmedium Value | Janus Investment vs. Ab Small Cap | Janus Investment vs. Queens Road Small |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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