Correlation Between Janus Research and Voya Smallcap

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

By analyzing existing cross correlation between Janus Research Fund and Voya Smallcap Opportunities, you can compare the effects of market volatilities on Janus Research and Voya Smallcap 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 Research with a short position of Voya Smallcap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Research and Voya Smallcap.

Diversification Opportunities for Janus Research and Voya Smallcap

0.0

Correlation Coefficient

Janus Research  Voya Smallcap

Pay attention - limited upside

The 3 months correlation between Janus and Voya is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Janus Research Fund and Voya Smallcap Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Smallcap Opport and Janus Research 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 Research Fund are associated (or correlated) with Voya Smallcap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Smallcap Opport has no effect on the direction of Janus Research i.e., Janus Research and Voya Smallcap go up and down completely randomly.

Pair Corralation between Janus Research and Voya Smallcap

If you would invest  8,075  in Janus Research Fund on September 11, 2024 and sell it today you would earn a total of  535.00  from holding Janus Research Fund or generate 6.63% return on investment over 90 days.

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

Janus Research Fund  vs.  Voya Smallcap Opportunities

Janus Research

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Janus Research Fund are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Janus Research may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Voya Smallcap Opport

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Janus Research and Voya Smallcap

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

The idea behind Janus Research Fund and Voya Smallcap Opportunities 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.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.