Correlation Between Janus Investment and Emerging Markets
Can any of the company-specific risk be diversified away by investing in both Janus Investment and Emerging Markets 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 Emerging Markets into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Janus Investment and Emerging Markets Fund, you can compare the effects of market volatilities on Janus Investment and Emerging Markets 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 Emerging Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Investment and Emerging Markets.
Diversification Opportunities for Janus Investment and Emerging Markets
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Janus and Emerging is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Janus Investment and Emerging Markets Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerging Markets 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 Emerging Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerging Markets has no effect on the direction of Janus Investment i.e., Janus Investment and Emerging Markets go up and down completely randomly.
Pair Corralation between Janus Investment and Emerging Markets
If you would invest 100.00 in Janus Investment on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Janus Investment or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Janus Investment vs. Emerging Markets Fund
Performance |
| Timeline |
| Janus Investment |
| Emerging Markets |
Janus Investment and Emerging Markets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus Investment and Emerging Markets
The main advantage of trading using opposite Janus Investment and Emerging Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus Investment position performs unexpectedly, Emerging Markets 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 Emerging Markets will offset losses from the drop in Emerging Markets' long position.| Janus Investment vs. Vanguard Total Stock | Janus Investment vs. Vanguard 500 Index | Janus Investment vs. Vanguard Total Stock | Janus Investment vs. Vanguard Total Stock |
| Emerging Markets vs. Hsbc Treasury Money | Emerging Markets vs. First American Funds | Emerging Markets vs. Aig Government Money | Emerging Markets vs. Janus Investment |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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