Correlation Between Janus Research and Janus Henderson
Can any of the company-specific risk be diversified away by investing in both Janus Research and Janus Henderson 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 Research and Janus Henderson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Janus Research Fund and Janus Henderson Research, you can compare the effects of market volatilities on Janus Research and Janus Henderson 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 Research with a short position of Janus Henderson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Research and Janus Henderson.
Diversification Opportunities for Janus Research and Janus Henderson
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between JANUS and Janus is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Janus Research Fund and Janus Henderson Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Henderson Research and Janus Research 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 Research Fund are associated (or correlated) with Janus Henderson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Henderson Research has no effect on the direction of Janus Research i.e., Janus Research and Janus Henderson go up and down completely randomly.
Pair Corralation between Janus Research and Janus Henderson
Assuming the 90 days horizon Janus Research Fund is expected to generate 1.0 times more return on investment than Janus Henderson. However, Janus Research is 1.0 times more volatile than Janus Henderson Research. It trades about 0.11 of its potential returns per unit of risk. Janus Henderson Research is currently generating about 0.11 per unit of risk. If you would invest 4,813 in Janus Research Fund on August 26, 2024 and sell it today you would earn a total of 3,600 from holding Janus Research Fund or generate 74.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Janus Research Fund vs. Janus Henderson Research
Performance |
| Timeline |
| Janus Research |
| Janus Henderson Research |
Janus Research and Janus Henderson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus Research and Janus Henderson
The main advantage of trading using opposite Janus Research and Janus Henderson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus Research position performs unexpectedly, Janus Henderson 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 Janus Henderson will offset losses from the drop in Janus Henderson's long position.| Janus Research vs. Janus Enterprise Fund | Janus Research vs. Janus Research Fund | Janus Research vs. Perkins Mid Cap | Janus Research vs. Janus Forty Fund |
| Janus Henderson vs. Aqr Large Cap | Janus Henderson vs. William Blair Large | Janus Henderson vs. Quantitative U S | Janus Henderson vs. Fisher Large Cap |
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.
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