Correlation Between Global X and Janus Henderson
Can any of the company-specific risk be diversified away by investing in both Global X and Janus Henderson 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 Global X and Janus Henderson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Funds and Janus Henderson Short, you can compare the effects of market volatilities on Global X and Janus Henderson 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 Global X with a short position of Janus Henderson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Janus Henderson.
Diversification Opportunities for Global X and Janus Henderson
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Global and Janus is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Global X Funds and Janus Henderson Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Henderson Short and Global X 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 Global X Funds are associated (or correlated) with Janus Henderson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Henderson Short has no effect on the direction of Global X i.e., Global X and Janus Henderson go up and down completely randomly.
Pair Corralation between Global X and Janus Henderson
Given the investment horizon of 90 days Global X Funds is expected to generate 38.41 times more return on investment than Janus Henderson. However, Global X is 38.41 times more volatile than Janus Henderson Short. It trades about 0.07 of its potential returns per unit of risk. Janus Henderson Short is currently generating about 0.31 per unit of risk. If you would invest 3,836 in Global X Funds on August 30, 2024 and sell it today you would earn a total of 87.00 from holding Global X Funds or generate 2.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Global X Funds vs. Janus Henderson Short
Performance |
| Timeline |
| Global X Funds |
| Janus Henderson Short |
Global X and Janus Henderson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and Janus Henderson
The main advantage of trading using opposite Global X and Janus Henderson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, Janus Henderson 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 Henderson will offset losses from the drop in Janus Henderson's long position.| Global X vs. First Trust Exchange Traded | Global X vs. Ultimus Managers Trust | Global X vs. Horizon Kinetics Medical | Global X vs. Harbor Health Care |
| Janus Henderson vs. Invesco Variable Rate | Janus Henderson vs. Invesco Ultra Short | Janus Henderson vs. SPDR Bloomberg Investment | Janus Henderson vs. First Trust Low |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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