Correlation Between IPath Series and Janus Henderson
Can any of the company-specific risk be diversified away by investing in both IPath Series 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 IPath Series and Janus Henderson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iPath Series B and Janus Henderson Mid, you can compare the effects of market volatilities on IPath Series 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 IPath Series with a short position of Janus Henderson. Check out your portfolio center. Please also check ongoing floating volatility patterns of IPath Series and Janus Henderson.
Diversification Opportunities for IPath Series and Janus Henderson
-0.92 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IPath and Janus is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding iPath Series B and Janus Henderson Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Henderson Mid and IPath Series 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 iPath Series B 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 Mid has no effect on the direction of IPath Series i.e., IPath Series and Janus Henderson go up and down completely randomly.
Pair Corralation between IPath Series and Janus Henderson
Considering the 90-day investment horizon iPath Series B is expected to generate 4.81 times more return on investment than Janus Henderson. However, IPath Series is 4.81 times more volatile than Janus Henderson Mid. It trades about 0.07 of its potential returns per unit of risk. Janus Henderson Mid is currently generating about -0.25 per unit of risk. If you would invest 4,176 in iPath Series B on October 7, 2024 and sell it today you would earn a total of 234.00 from holding iPath Series B or generate 5.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iPath Series B vs. Janus Henderson Mid
Performance |
| Timeline |
| iPath Series B |
| Janus Henderson Mid |
IPath Series and Janus Henderson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IPath Series and Janus Henderson
The main advantage of trading using opposite IPath Series and Janus Henderson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IPath Series 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.| IPath Series vs. ProShares Ultra VIX | IPath Series vs. ProShares Short VIX | IPath Series vs. ProShares UltraPro Short | IPath Series vs. iShares 20 Year |
| Janus Henderson vs. JPMorgan Fundamental Data | Janus Henderson vs. Matthews China Discovery | Janus Henderson vs. Davis Select International | Janus Henderson vs. Dimensional ETF Trust |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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