Correlation Between Janus Henderson and Beta Shares

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

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

Diversification Opportunities for Janus Henderson and Beta Shares

-0.4

Correlation Coefficient

Janus Henderson  Beta Shares

Very good diversification

The 3 months correlation between Janus and Beta is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Janus Henderson Sustainable and Beta Shares SPASX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beta Shares SPASX 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 Sustainable are associated (or correlated) with Beta Shares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beta Shares SPASX has no effect on the direction of Janus Henderson i.e., Janus Henderson and Beta Shares go up and down completely randomly.

Pair Corralation between Janus Henderson and Beta Shares

Assuming the 90 days trading horizon Janus Henderson Sustainable is expected to generate 0.19 times more return on investment than Beta Shares. However, Janus Henderson Sustainable is 5.22 times less risky than Beta Shares. It trades about 0.16 of its potential returns per unit of risk. Beta Shares SPASX is currently generating about -0.03 per unit of risk. If you would invest  4,972  in Janus Henderson Sustainable on December 29, 2024 and sell it today you would earn a total of  96.00  from holding Janus Henderson Sustainable or generate 1.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Janus Henderson Sustainable  vs.  Beta Shares SPASX

Janus Henderson Sust

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Janus Henderson Sustainable are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Janus Henderson is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Beta Shares SPASX

Risk-Adjusted Performance

Very Weak

Over the last 90 days Beta Shares SPASX has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Beta Shares is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Janus Henderson and Beta Shares

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

The idea behind Janus Henderson Sustainable and Beta Shares SPASX 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.