Correlation Between International Growth and Janus Forty
Can any of the company-specific risk be diversified away by investing in both International Growth and Janus Forty 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 International Growth and Janus Forty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Growth Fund and Janus Forty Fund, you can compare the effects of market volatilities on International Growth and Janus Forty 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 International Growth with a short position of Janus Forty. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Growth and Janus Forty.
Diversification Opportunities for International Growth and Janus Forty
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between International and Janus is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding International Growth Fund and Janus Forty Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Forty Fund and International Growth 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 International Growth Fund are associated (or correlated) with Janus Forty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Forty Fund has no effect on the direction of International Growth i.e., International Growth and Janus Forty go up and down completely randomly.
Pair Corralation between International Growth and Janus Forty
Assuming the 90 days horizon International Growth is expected to generate 3.2 times less return on investment than Janus Forty. But when comparing it to its historical volatility, International Growth Fund is 1.19 times less risky than Janus Forty. It trades about 0.03 of its potential returns per unit of risk. Janus Forty Fund is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 3,463 in Janus Forty Fund on August 30, 2024 and sell it today you would earn a total of 2,077 from holding Janus Forty Fund or generate 59.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Growth Fund vs. Janus Forty Fund
Performance |
| Timeline |
| International Growth |
| Janus Forty Fund |
International Growth and Janus Forty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Growth and Janus Forty
The main advantage of trading using opposite International Growth and Janus Forty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Growth position performs unexpectedly, Janus Forty 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 Forty will offset losses from the drop in Janus Forty's long position.| International Growth vs. Europacific Growth Fund | International Growth vs. Europacific Growth Fund | International Growth vs. Europacific Growth Fund | International Growth vs. Europacific Growth Fund |
| Janus Forty vs. T Rowe Price | Janus Forty vs. T Rowe Price | Janus Forty vs. T Rowe Price | Janus Forty vs. T Rowe Price |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |