Correlation Between Total Return and Janus Flexible
Can any of the company-specific risk be diversified away by investing in both Total Return and Janus Flexible 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 Total Return and Janus Flexible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Total Return Fund and Janus Flexible Bond, you can compare the effects of market volatilities on Total Return and Janus Flexible 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 Total Return with a short position of Janus Flexible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Total Return and Janus Flexible.
Diversification Opportunities for Total Return and Janus Flexible
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Total and JANUS is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Total Return Fund and Janus Flexible Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Flexible Bond and Total Return 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 Total Return Fund are associated (or correlated) with Janus Flexible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Flexible Bond has no effect on the direction of Total Return i.e., Total Return and Janus Flexible go up and down completely randomly.
Pair Corralation between Total Return and Janus Flexible
Assuming the 90 days horizon Total Return Fund is expected to under-perform the Janus Flexible. In addition to that, Total Return is 1.03 times more volatile than Janus Flexible Bond. It trades about -0.04 of its total potential returns per unit of risk. Janus Flexible Bond is currently generating about -0.03 per unit of volatility. If you would invest 924.00 in Janus Flexible Bond on October 22, 2024 and sell it today you would lose (7.00) from holding Janus Flexible Bond or give up 0.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Total Return Fund vs. Janus Flexible Bond
Performance |
| Timeline |
| Total Return |
| Janus Flexible Bond |
Total Return and Janus Flexible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Total Return and Janus Flexible
The main advantage of trading using opposite Total Return and Janus Flexible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Total Return position performs unexpectedly, Janus Flexible 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 Flexible will offset losses from the drop in Janus Flexible's long position.| Total Return vs. Vanguard Institutional Index | Total Return vs. Dodge Stock Fund | Total Return vs. Europacific Growth Fund | Total Return vs. Real Return Fund |
| Janus Flexible vs. Virtus Emerging Markets | Janus Flexible vs. Oppenheimer International Growth | Janus Flexible vs. Commodityrealreturn Strategy Fund | Janus Flexible vs. Mfs Value 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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