Correlation Between Ethereum and Janus Henderson

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

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

Diversification Opportunities for Ethereum and Janus Henderson

0.56

Correlation Coefficient

Ethereum  Janus Henderson

Very weak diversification

The 3 months correlation between Ethereum and Janus is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Ethereum and Janus Henderson Sustainable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Henderson Sust and Ethereum 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 Ethereum 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 Sust has no effect on the direction of Ethereum i.e., Ethereum and Janus Henderson go up and down completely randomly.

Pair Corralation between Ethereum and Janus Henderson

Assuming the 90 days trading horizon Ethereum is expected to generate 16.56 times more return on investment than Janus Henderson. However, Ethereum is 16.56 times more volatile than Janus Henderson Sustainable. It trades about 0.06 of its potential returns per unit of risk. Janus Henderson Sustainable is currently generating about 0.05 per unit of risk. If you would invest  167,161  in Ethereum on October 26, 2024 and sell it today you would earn a total of  163,118  from holding Ethereum or generate 97.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	79.05%
Values	Daily Returns

Ethereum  vs.  Janus Henderson Sustainable

Ethereum

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ethereum are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical indicators, Ethereum exhibited solid returns over the last few months and may actually be approaching a breakup point.

Janus Henderson Sust

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Janus Henderson Sustainable has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Janus Henderson is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Ethereum and Janus Henderson

The main advantage of trading using opposite Ethereum and Janus Henderson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ethereum 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 Ethereum and Janus Henderson Sustainable 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.