Correlation Between First Eagle and Janus Enterprise
Can any of the company-specific risk be diversified away by investing in both First Eagle and Janus Enterprise 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 Enterprise 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 Enterprise Fund, you can compare the effects of market volatilities on First Eagle and Janus Enterprise 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 Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Janus Enterprise.
Diversification Opportunities for First Eagle and Janus Enterprise
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between First and Janus is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Global and Janus Enterprise Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Enterprise 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 Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Enterprise has no effect on the direction of First Eagle i.e., First Eagle and Janus Enterprise go up and down completely randomly.
Pair Corralation between First Eagle and Janus Enterprise
Assuming the 90 days horizon First Eagle Global is expected to under-perform the Janus Enterprise. But the mutual fund apears to be less risky and, when comparing its historical volatility, First Eagle Global is 1.8 times less risky than Janus Enterprise. The mutual fund trades about -0.06 of its potential returns per unit of risk. The Janus Enterprise Fund is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 15,192 in Janus Enterprise Fund on August 29, 2024 and sell it today you would earn a total of 872.00 from holding Janus Enterprise Fund or generate 5.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
First Eagle Global vs. Janus Enterprise Fund
Performance |
| Timeline |
| First Eagle Global |
| Janus Enterprise |
First Eagle and Janus Enterprise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Janus Enterprise
The main advantage of trading using opposite First Eagle and Janus Enterprise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Janus Enterprise 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 Enterprise will offset losses from the drop in Janus Enterprise'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 Enterprise vs. T Rowe Price | Janus Enterprise vs. T Rowe Price | Janus Enterprise vs. T Rowe Price | Janus Enterprise vs. Midcap Fund Class |
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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