Correlation Between Janus Henderson and Global X
Can any of the company-specific risk be diversified away by investing in both Janus Henderson and Global X 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 Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Janus Henderson SmallMid and Global X Conscious, you can compare the effects of market volatilities on Janus Henderson and Global X 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 Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Henderson and Global X.
Diversification Opportunities for Janus Henderson and Global X
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Janus and Global is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Janus Henderson SmallMid and Global X Conscious in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Conscious 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 SmallMid are associated (or correlated) with Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Conscious has no effect on the direction of Janus Henderson i.e., Janus Henderson and Global X go up and down completely randomly.
Pair Corralation between Janus Henderson and Global X
Given the investment horizon of 90 days Janus Henderson SmallMid is expected to generate 1.49 times more return on investment than Global X. However, Janus Henderson is 1.49 times more volatile than Global X Conscious. It trades about 0.08 of its potential returns per unit of risk. Global X Conscious is currently generating about 0.11 per unit of risk. If you would invest 5,998 in Janus Henderson SmallMid on September 2, 2024 and sell it today you would earn a total of 2,179 from holding Janus Henderson SmallMid or generate 36.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Janus Henderson SmallMid vs. Global X Conscious
Performance |
| Timeline |
| Janus Henderson SmallMid |
| Global X Conscious |
Janus Henderson and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus Henderson and Global X
The main advantage of trading using opposite Janus Henderson and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus Henderson position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| Janus Henderson vs. Janus Henderson Small | Janus Henderson vs. First Trust Mid | Janus Henderson vs. First Trust Multi | Janus Henderson vs. ClearBridge Large Cap |
| Global X vs. Global X SP | Global X vs. Global X MSCI | Global X vs. Global X Alternative | Global X vs. Janus Henderson SmallMid |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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