Correlation Between Janus Investment and Westwood Smidcap
Can any of the company-specific risk be diversified away by investing in both Janus Investment and Westwood Smidcap 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 Westwood Smidcap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Janus Investment and Westwood Smidcap Fund, you can compare the effects of market volatilities on Janus Investment and Westwood Smidcap 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 Westwood Smidcap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Investment and Westwood Smidcap.
Diversification Opportunities for Janus Investment and Westwood Smidcap
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Janus and Westwood is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Janus Investment and Westwood Smidcap Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westwood Smidcap 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 Westwood Smidcap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westwood Smidcap has no effect on the direction of Janus Investment i.e., Janus Investment and Westwood Smidcap go up and down completely randomly.
Pair Corralation between Janus Investment and Westwood Smidcap
If you would invest 1,613 in Westwood Smidcap Fund on September 4, 2024 and sell it today you would earn a total of 119.00 from holding Westwood Smidcap Fund or generate 7.38% 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. Westwood Smidcap Fund
Performance |
| Timeline |
| Janus Investment |
| Westwood Smidcap |
Janus Investment and Westwood Smidcap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus Investment and Westwood Smidcap
The main advantage of trading using opposite Janus Investment and Westwood Smidcap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus Investment position performs unexpectedly, Westwood Smidcap 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 Westwood Smidcap will offset losses from the drop in Westwood Smidcap's 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 |
| Westwood Smidcap vs. Matson Money Equity | Westwood Smidcap vs. Franklin Government Money | Westwood Smidcap vs. Lord Abbett Emerging | Westwood Smidcap 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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