Correlation Between Janus Contrarian and Janus Global
Can any of the company-specific risk be diversified away by investing in both Janus Contrarian and Janus Global 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 Contrarian and Janus Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Janus Trarian Fund and Janus Global Life, you can compare the effects of market volatilities on Janus Contrarian and Janus Global 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 Contrarian with a short position of Janus Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Contrarian and Janus Global.
Diversification Opportunities for Janus Contrarian and Janus Global
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Janus and JANUS is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Janus Trarian Fund and Janus Global Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Global Life and Janus Contrarian 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 Trarian Fund are associated (or correlated) with Janus Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Global Life has no effect on the direction of Janus Contrarian i.e., Janus Contrarian and Janus Global go up and down completely randomly.
Pair Corralation between Janus Contrarian and Janus Global
Assuming the 90 days horizon Janus Trarian Fund is expected to generate 1.16 times more return on investment than Janus Global. However, Janus Contrarian is 1.16 times more volatile than Janus Global Life. It trades about 0.2 of its potential returns per unit of risk. Janus Global Life is currently generating about -0.1 per unit of risk. If you would invest 3,090 in Janus Trarian Fund on September 4, 2024 and sell it today you would earn a total of 155.00 from holding Janus Trarian Fund or generate 5.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Janus Trarian Fund vs. Janus Global Life
Performance |
| Timeline |
| Janus Contrarian |
| Janus Global Life |
Janus Contrarian and Janus Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus Contrarian and Janus Global
The main advantage of trading using opposite Janus Contrarian and Janus Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus Contrarian position performs unexpectedly, Janus Global 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 Global will offset losses from the drop in Janus Global's long position.| Janus Contrarian vs. Janus Global Select | Janus Contrarian vs. Janus Overseas Fund | Janus Contrarian vs. Janus Global Technology | Janus Contrarian vs. Janus Research Fund |
| Janus Global vs. Janus Global Life | Janus Global vs. Janus Global Life | Janus Global vs. Janus Global Life | Janus Global vs. Blackrock Health Sciences |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |