Correlation Between NYSE Composite and Janus Global
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Janus Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Janus Global Allocation, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Janus Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Janus Global.
Diversification Opportunities for NYSE Composite and Janus Global
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between NYSE and Janus is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Janus Global Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Global Allocation and NYSE Composite 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 NYSE Composite 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 Allocation has no effect on the direction of NYSE Composite i.e., NYSE Composite and Janus Global go up and down completely randomly.
Pair Corralation between NYSE Composite and Janus Global
Assuming the 90 days trading horizon NYSE Composite is expected to under-perform the Janus Global. In addition to that, NYSE Composite is 2.14 times more volatile than Janus Global Allocation. It trades about -0.04 of its total potential returns per unit of risk. Janus Global Allocation is currently generating about -0.05 per unit of volatility. If you would invest 1,156 in Janus Global Allocation on January 14, 2025 and sell it today you would lose (35.00) from holding Janus Global Allocation or give up 3.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.02% |
| Values | Daily Returns |
NYSE Composite vs. Janus Global Allocation
Performance |
| Timeline |
NYSE Composite and Janus Global Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Janus Global Allocation
Pair trading matchups for Janus Global
Pair Trading with NYSE Composite and Janus Global
The main advantage of trading using opposite NYSE Composite and Janus Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Vinci Partners Investments | NYSE Composite vs. Gladstone Investment | NYSE Composite vs. Greentown Management Holdings | NYSE Composite vs. Avient Corp |
| Janus Global vs. Janus Global Allocation | Janus Global vs. Janus Global Allocation | Janus Global vs. Janus Global Select | Janus Global vs. Janus Triton Fund |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |