Correlation Between Xp and Janus Henderson
Can any of the company-specific risk be diversified away by investing in both Xp 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 Xp and Janus Henderson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xp Inc and Janus Henderson Group, you can compare the effects of market volatilities on Xp 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 Xp with a short position of Janus Henderson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xp and Janus Henderson.
Diversification Opportunities for Xp and Janus Henderson
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xp and Janus is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Xp Inc and Janus Henderson Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Henderson Group and Xp 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 Xp Inc 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 Group has no effect on the direction of Xp i.e., Xp and Janus Henderson go up and down completely randomly.
Pair Corralation between Xp and Janus Henderson
Allowing for the 90-day total investment horizon Xp Inc is expected to under-perform the Janus Henderson. In addition to that, Xp is 1.44 times more volatile than Janus Henderson Group. It trades about -0.23 of its total potential returns per unit of risk. Janus Henderson Group is currently generating about 0.34 per unit of volatility. If you would invest 4,024 in Janus Henderson Group on August 28, 2024 and sell it today you would earn a total of 501.00 from holding Janus Henderson Group or generate 12.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xp Inc vs. Janus Henderson Group
Performance |
| Timeline |
| Xp Inc |
| Janus Henderson Group |
Xp and Janus Henderson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xp and Janus Henderson
The main advantage of trading using opposite Xp and Janus Henderson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xp 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.| Xp vs. Up Fintech Holding | Xp vs. Bit Digital | Xp vs. Marathon Digital Holdings | Xp vs. MarketAxess Holdings |
| Janus Henderson vs. Franklin Resources | Janus Henderson vs. State Street Corp | Janus Henderson vs. Northern Trust | Janus Henderson vs. Principal Financial Group |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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