Correlation Between Thornburg International and Janus Research
Can any of the company-specific risk be diversified away by investing in both Thornburg International and Janus Research 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 Thornburg International and Janus Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thornburg International Value and Janus Research Fund, you can compare the effects of market volatilities on Thornburg International and Janus Research 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 Thornburg International with a short position of Janus Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thornburg International and Janus Research.
Diversification Opportunities for Thornburg International and Janus Research
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Thornburg and Janus is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Thornburg International Value and Janus Research Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Research and Thornburg International 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 Thornburg International Value are associated (or correlated) with Janus Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Research has no effect on the direction of Thornburg International i.e., Thornburg International and Janus Research go up and down completely randomly.
Pair Corralation between Thornburg International and Janus Research
Assuming the 90 days horizon Thornburg International is expected to generate 2.61 times less return on investment than Janus Research. But when comparing it to its historical volatility, Thornburg International Value is 1.48 times less risky than Janus Research. It trades about 0.06 of its potential returns per unit of risk. Janus Research Fund is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 6,275 in Janus Research Fund on September 12, 2024 and sell it today you would earn a total of 1,942 from holding Janus Research Fund or generate 30.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thornburg International Value vs. Janus Research Fund
Performance |
| Timeline |
| Thornburg International |
| Janus Research |
Thornburg International and Janus Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thornburg International and Janus Research
The main advantage of trading using opposite Thornburg International and Janus Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thornburg International position performs unexpectedly, Janus Research 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 Research will offset losses from the drop in Janus Research's long position.| Thornburg International vs. Total Return Fund | Thornburg International vs. Blackrock Gbl Alloc | Thornburg International vs. Blackrock Eq Dividend | Thornburg International vs. Davis New York |
| Janus Research vs. Janus Enterprise Fund | Janus Research vs. Janus Research Fund | Janus Research vs. Perkins Mid Cap | Janus Research vs. Janus Forty 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |