Correlation Between Thornburg International and Janus Flexible
Can any of the company-specific risk be diversified away by investing in both Thornburg International 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 Thornburg International and Janus Flexible 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 Flexible Bond, you can compare the effects of market volatilities on Thornburg International 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 Thornburg International with a short position of Janus Flexible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thornburg International and Janus Flexible.
Diversification Opportunities for Thornburg International and Janus Flexible
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thornburg and Janus is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Thornburg International Value 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 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 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 Thornburg International i.e., Thornburg International and Janus Flexible go up and down completely randomly.
Pair Corralation between Thornburg International and Janus Flexible
Assuming the 90 days horizon Thornburg International Value is expected to generate 2.24 times more return on investment than Janus Flexible. However, Thornburg International is 2.24 times more volatile than Janus Flexible Bond. It trades about 0.03 of its potential returns per unit of risk. Janus Flexible Bond is currently generating about 0.02 per unit of risk. If you would invest 2,070 in Thornburg International Value on August 29, 2024 and sell it today you would earn a total of 94.00 from holding Thornburg International Value or generate 4.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thornburg International Value vs. Janus Flexible Bond
Performance |
| Timeline |
| Thornburg International |
| Janus Flexible Bond |
Thornburg International and Janus Flexible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thornburg International and Janus Flexible
The main advantage of trading using opposite Thornburg International and Janus Flexible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thornburg International 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.| Thornburg International vs. Rbc Short Duration | Thornburg International vs. Aqr Long Short Equity | Thornburg International vs. Touchstone Ultra Short | Thornburg International vs. Angel Oak Ultrashort |
| Janus Flexible vs. Janus Balanced Fund | Janus Flexible vs. Janus Triton Fund | Janus Flexible vs. Ivy High Income | Janus Flexible 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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