Correlation Between Global X and Janus Henderson

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

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

Diversification Opportunities for Global X and Janus Henderson

-0.01

Correlation Coefficient

Global X  Janus Henderson

Good diversification

The 3 months correlation between Global and Janus is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Global X Hydrogen 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 Global X 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 Global X Hydrogen 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 Global X i.e., Global X and Janus Henderson go up and down completely randomly.

Pair Corralation between Global X and Janus Henderson

Assuming the 90 days trading horizon Global X Hydrogen is expected to generate 10.17 times more return on investment than Janus Henderson. However, Global X is 10.17 times more volatile than Janus Henderson Sustainable. It trades about 0.1 of its potential returns per unit of risk. Janus Henderson Sustainable is currently generating about 0.0 per unit of risk. If you would invest  441.00  in Global X Hydrogen on September 3, 2024 and sell it today you would earn a total of  59.00  from holding Global X Hydrogen or generate 13.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Global X Hydrogen  vs.  Janus Henderson Sustainable

Global X Hydrogen

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Global X Hydrogen are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Global X unveiled 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 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.

Pair Trading with Global X and Janus Henderson

The main advantage of trading using opposite Global X and Janus Henderson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X 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 Global X Hydrogen 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.