Correlation Between Jpmorgan Intrepid and Janus Henderson
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Intrepid 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 Jpmorgan Intrepid and Janus Henderson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan Intrepid European and Janus Henderson European, you can compare the effects of market volatilities on Jpmorgan Intrepid 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 Jpmorgan Intrepid with a short position of Janus Henderson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Intrepid and Janus Henderson.
Diversification Opportunities for Jpmorgan Intrepid and Janus Henderson
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between JPMORGAN and Janus is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Intrepid European and Janus Henderson European in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Henderson European and Jpmorgan Intrepid 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 Jpmorgan Intrepid European 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 European has no effect on the direction of Jpmorgan Intrepid i.e., Jpmorgan Intrepid and Janus Henderson go up and down completely randomly.
Pair Corralation between Jpmorgan Intrepid and Janus Henderson
Assuming the 90 days horizon Jpmorgan Intrepid European is expected to under-perform the Janus Henderson. But the mutual fund apears to be less risky and, when comparing its historical volatility, Jpmorgan Intrepid European is 1.1 times less risky than Janus Henderson. The mutual fund trades about -0.12 of its potential returns per unit of risk. The Janus Henderson European is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 4,689 in Janus Henderson European on September 4, 2024 and sell it today you would lose (78.00) from holding Janus Henderson European or give up 1.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Intrepid European vs. Janus Henderson European
Performance |
| Timeline |
| Jpmorgan Intrepid |
| Janus Henderson European |
Jpmorgan Intrepid and Janus Henderson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Intrepid and Janus Henderson
The main advantage of trading using opposite Jpmorgan Intrepid and Janus Henderson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Intrepid 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.The idea behind Jpmorgan Intrepid European and Janus Henderson European pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Janus Henderson vs. Janus Research Fund | Janus Henderson vs. Janus Research Fund | Janus Henderson vs. Janus Research Fund | Janus Henderson vs. Janus Research 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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