Correlation Between Growth Fund and Janus Research
Can any of the company-specific risk be diversified away by investing in both Growth Fund 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 Growth Fund and Janus Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Fund Investor and Janus Research Fund, you can compare the effects of market volatilities on Growth Fund 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 Growth Fund with a short position of Janus Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and Janus Research.
Diversification Opportunities for Growth Fund and Janus Research
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Growth and Janus is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Investor and Janus Research Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Research and Growth Fund 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 Growth Fund Investor 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 Growth Fund i.e., Growth Fund and Janus Research go up and down completely randomly.
Pair Corralation between Growth Fund and Janus Research
Assuming the 90 days horizon Growth Fund Investor is expected to generate 0.62 times more return on investment than Janus Research. However, Growth Fund Investor is 1.61 times less risky than Janus Research. It trades about 0.17 of its potential returns per unit of risk. Janus Research Fund is currently generating about -0.05 per unit of risk. If you would invest 6,087 in Growth Fund Investor on September 12, 2024 and sell it today you would earn a total of 173.00 from holding Growth Fund Investor or generate 2.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Growth Fund Investor vs. Janus Research Fund
Performance |
| Timeline |
| Growth Fund Investor |
| Janus Research |
Growth Fund and Janus Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Fund and Janus Research
The main advantage of trading using opposite Growth Fund and Janus Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund 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.| Growth Fund vs. Select Fund Investor | Growth Fund vs. International Growth Fund | Growth Fund vs. Heritage Fund Investor | Growth Fund vs. Janus Global Research |
| Janus Research vs. Growth Fund Investor | Janus Research vs. Select Fund Investor | Janus Research vs. International Growth Fund | Janus Research vs. Heritage Fund Investor |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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