Correlation Between Aim Investment and Janus Global
Can any of the company-specific risk be diversified away by investing in both Aim Investment 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 Aim Investment and Janus Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aim Investment Secs and Janus Global Technology, you can compare the effects of market volatilities on Aim Investment 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 Aim Investment with a short position of Janus Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aim Investment and Janus Global.
Diversification Opportunities for Aim Investment and Janus Global
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aim and Janus is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Aim Investment Secs and Janus Global Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Global Technology and Aim Investment 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 Aim Investment Secs 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 Technology has no effect on the direction of Aim Investment i.e., Aim Investment and Janus Global go up and down completely randomly.
Pair Corralation between Aim Investment and Janus Global
Assuming the 90 days horizon Aim Investment is expected to generate 10.82 times less return on investment than Janus Global. But when comparing it to its historical volatility, Aim Investment Secs is 9.02 times less risky than Janus Global. It trades about 0.13 of its potential returns per unit of risk. Janus Global Technology is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 6,237 in Janus Global Technology on September 2, 2024 and sell it today you would earn a total of 692.00 from holding Janus Global Technology or generate 11.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aim Investment Secs vs. Janus Global Technology
Performance |
| Timeline |
| Aim Investment Secs |
| Janus Global Technology |
Aim Investment and Janus Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aim Investment and Janus Global
The main advantage of trading using opposite Aim Investment and Janus Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aim Investment 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.| Aim Investment vs. Columbia Real Estate | Aim Investment vs. Fidelity Real Estate | Aim Investment vs. Franklin Real Estate | Aim Investment vs. Guggenheim Risk Managed |
| Janus Global vs. Janus Global Life | Janus Global vs. Janus Research Fund | Janus Global vs. Janus Enterprise Fund | Janus Global vs. Janus Trarian 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |