Correlation Between Aristotle Funds and Janus Global

Can any of the company-specific risk be diversified away by investing in both Aristotle Funds and Janus Global 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 Aristotle Funds and Janus Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aristotle Funds Series and Janus Global Technology, you can compare the effects of market volatilities on Aristotle Funds and Janus Global 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 Aristotle Funds with a short position of Janus Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aristotle Funds and Janus Global.

Diversification Opportunities for Aristotle Funds and Janus Global

0.5

Correlation Coefficient

Aristotle Funds  Janus Global

Very weak diversification

The 3 months correlation between Aristotle and Janus is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Aristotle Funds Series and Janus Global Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Global Technology and Aristotle Funds 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 Aristotle Funds Series are associated (or correlated) with Janus Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Global Technology has no effect on the direction of Aristotle Funds i.e., Aristotle Funds and Janus Global go up and down completely randomly.

Pair Corralation between Aristotle Funds and Janus Global

Assuming the 90 days horizon Aristotle Funds is expected to generate 3.91 times less return on investment than Janus Global. But when comparing it to its historical volatility, Aristotle Funds Series is 1.28 times less risky than Janus Global. It trades about 0.03 of its potential returns per unit of risk. Janus Global Technology is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  3,287  in Janus Global Technology on September 26, 2024 and sell it today you would earn a total of  2,996  from holding Janus Global Technology or generate 91.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	86.09%
Values	Daily Returns

Aristotle Funds Series  vs.  Janus Global Technology

Aristotle Funds Series

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aristotle Funds Series has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental drivers, Aristotle Funds is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Janus Global Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Janus Global Technology has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Janus Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Aristotle Funds and Janus Global

The main advantage of trading using opposite Aristotle Funds and Janus Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aristotle Funds position performs unexpectedly, Janus Global 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 Global will offset losses from the drop in Janus Global's long position.

The idea behind Aristotle Funds Series and Janus Global Technology 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.

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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.