Correlation Between Jpmorgan Hedged and Janus Henderson

Can any of the company-specific risk be diversified away by investing in both Jpmorgan Hedged 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 Hedged 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 Hedged Equity and Janus Henderson Global, you can compare the effects of market volatilities on Jpmorgan Hedged 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 Hedged with a short position of Janus Henderson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Hedged and Janus Henderson.

Diversification Opportunities for Jpmorgan Hedged and Janus Henderson

0.0

Correlation Coefficient

Jpmorgan Hedged  Janus Henderson

Pay attention - limited upside

The 3 months correlation between Jpmorgan and Janus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Hedged Equity and Janus Henderson Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Henderson Global and Jpmorgan Hedged 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 Hedged Equity 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 Global has no effect on the direction of Jpmorgan Hedged i.e., Jpmorgan Hedged and Janus Henderson go up and down completely randomly.

Pair Corralation between Jpmorgan Hedged and Janus Henderson

If you would invest  3,175  in Jpmorgan Hedged Equity on September 11, 2024 and sell it today you would earn a total of  224.00  from holding Jpmorgan Hedged Equity or generate 7.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Jpmorgan Hedged Equity  vs.  Janus Henderson Global

Jpmorgan Hedged Equity

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Jpmorgan Hedged Equity are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Jpmorgan Hedged may actually be approaching a critical reversion point that can send shares even higher in January 2025.

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 latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Jpmorgan Hedged and Janus Henderson

The main advantage of trading using opposite Jpmorgan Hedged and Janus Henderson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Hedged 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 Hedged Equity and Janus Henderson Global 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.