Correlation Between First Eagle and Janus Balanced
Can any of the company-specific risk be diversified away by investing in both First Eagle and Janus Balanced 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 First Eagle and Janus Balanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Eagle Global and Janus Balanced Fund, you can compare the effects of market volatilities on First Eagle and Janus Balanced 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 First Eagle with a short position of Janus Balanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Janus Balanced.
Diversification Opportunities for First Eagle and Janus Balanced
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FIRST and Janus is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Global and Janus Balanced Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Balanced and First Eagle 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 First Eagle Global are associated (or correlated) with Janus Balanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Balanced has no effect on the direction of First Eagle i.e., First Eagle and Janus Balanced go up and down completely randomly.
Pair Corralation between First Eagle and Janus Balanced
Assuming the 90 days horizon First Eagle is expected to generate 6.45 times less return on investment than Janus Balanced. But when comparing it to its historical volatility, First Eagle Global is 1.03 times less risky than Janus Balanced. It trades about 0.05 of its potential returns per unit of risk. Janus Balanced Fund is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 4,732 in Janus Balanced Fund on September 2, 2024 and sell it today you would earn a total of 165.00 from holding Janus Balanced Fund or generate 3.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Eagle Global vs. Janus Balanced Fund
Performance |
| Timeline |
| First Eagle Global |
| Janus Balanced |
First Eagle and Janus Balanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Janus Balanced
The main advantage of trading using opposite First Eagle and Janus Balanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Janus Balanced 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 Balanced will offset losses from the drop in Janus Balanced's long position.| First Eagle vs. Blackrock Gbl Alloc | First Eagle vs. Ivy Asset Strategy | First Eagle vs. Fpa Crescent Fund | First Eagle vs. Templeton Global Bond |
| Janus Balanced vs. Janus Global Research | Janus Balanced vs. Janus Enterprise Fund | Janus Balanced vs. Janus Forty Fund | Janus Balanced vs. Janus Overseas 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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