Correlation Between Perkins Small and Janus Research

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

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

Diversification Opportunities for Perkins Small and Janus Research

0.0

Correlation Coefficient

Perkins Small  Janus Research

Pay attention - limited upside

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

Pair Corralation between Perkins Small and Janus Research

If you would invest  7,940  in Janus Research Fund on September 3, 2024 and sell it today you would earn a total of  940.00  from holding Janus Research Fund or generate 11.84% return on investment over 90 days.

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

Perkins Small Cap  vs.  Janus Research Fund

Perkins Small Cap

Risk-Adjusted Performance

0 of 100

OK

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

Janus Research

Risk-Adjusted Performance

14 of 100

Good

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

Pair Trading with Perkins Small and Janus Research

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

The idea behind Perkins Small Cap and Janus Research Fund 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .