Correlation Between Janus Contrarian and Templeton Growth
Can any of the company-specific risk be diversified away by investing in both Janus Contrarian and Templeton Growth 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 Templeton Growth 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 Templeton Growth Fund, you can compare the effects of market volatilities on Janus Contrarian and Templeton Growth 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 Templeton Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Contrarian and Templeton Growth.
Diversification Opportunities for Janus Contrarian and Templeton Growth
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Janus and Templeton is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Janus Trarian Fund and Templeton Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Templeton Growth 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 Templeton Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Templeton Growth has no effect on the direction of Janus Contrarian i.e., Janus Contrarian and Templeton Growth go up and down completely randomly.
Pair Corralation between Janus Contrarian and Templeton Growth
Assuming the 90 days horizon Janus Trarian Fund is expected to generate 1.78 times more return on investment than Templeton Growth. However, Janus Contrarian is 1.78 times more volatile than Templeton Growth Fund. It trades about 0.15 of its potential returns per unit of risk. Templeton Growth Fund is currently generating about 0.05 per unit of risk. If you would invest 3,110 in Janus Trarian Fund on August 31, 2024 and sell it today you would earn a total of 122.00 from holding Janus Trarian Fund or generate 3.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Janus Trarian Fund vs. Templeton Growth Fund
Performance |
| Timeline |
| Janus Contrarian |
| Templeton Growth |
Janus Contrarian and Templeton Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus Contrarian and Templeton Growth
The main advantage of trading using opposite Janus Contrarian and Templeton Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus Contrarian position performs unexpectedly, Templeton Growth 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 Templeton Growth will offset losses from the drop in Templeton Growth'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 |
| Templeton Growth vs. Janus Trarian Fund | Templeton Growth vs. Janus Research Fund | Templeton Growth vs. Janus Enterprise Fund | Templeton Growth vs. Janus Global Technology |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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