Correlation Between Janus Henderson and Jpmorgan Large

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

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

Diversification Opportunities for Janus Henderson and Jpmorgan Large

-0.66

Correlation Coefficient

Janus Henderson  Jpmorgan Large

Excellent diversification

The 3 months correlation between Janus and Jpmorgan is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Janus Henderson Global and Jpmorgan Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Large Cap and Janus Henderson 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 Janus Henderson Global are associated (or correlated) with Jpmorgan Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Large Cap has no effect on the direction of Janus Henderson i.e., Janus Henderson and Jpmorgan Large go up and down completely randomly.

Pair Corralation between Janus Henderson and Jpmorgan Large

Assuming the 90 days horizon Janus Henderson Global is expected to under-perform the Jpmorgan Large. But the mutual fund apears to be less risky and, when comparing its historical volatility, Janus Henderson Global is 1.24 times less risky than Jpmorgan Large. The mutual fund trades about -0.11 of its potential returns per unit of risk. The Jpmorgan Large Cap is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  7,619  in Jpmorgan Large Cap on September 3, 2024 and sell it today you would earn a total of  883.00  from holding Jpmorgan Large Cap or generate 11.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Janus Henderson Global  vs.  Jpmorgan Large Cap

Janus Henderson Global

Risk-Adjusted Performance

0 of 100

Very Weak

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

Jpmorgan Large Cap

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jpmorgan Large Cap are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak primary indicators, Jpmorgan Large may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Janus Henderson and Jpmorgan Large

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

The idea behind Janus Henderson Global and Jpmorgan Large Cap 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.