Correlation Between SPDR Bloomberg and Janus Henderson

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

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

Diversification Opportunities for SPDR Bloomberg and Janus Henderson

0.97

Correlation Coefficient

SPDR Bloomberg  Janus Henderson

Almost no diversification

The 3 months correlation between SPDR and Janus is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Bloomberg Barclays and Janus Henderson Mortgage Backe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Henderson Mort and SPDR Bloomberg 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 SPDR Bloomberg Barclays 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 Mort has no effect on the direction of SPDR Bloomberg i.e., SPDR Bloomberg and Janus Henderson go up and down completely randomly.

Pair Corralation between SPDR Bloomberg and Janus Henderson

Considering the 90-day investment horizon SPDR Bloomberg Barclays is expected to generate 0.76 times more return on investment than Janus Henderson. However, SPDR Bloomberg Barclays is 1.31 times less risky than Janus Henderson. It trades about -0.11 of its potential returns per unit of risk. Janus Henderson Mortgage Backed is currently generating about -0.09 per unit of risk. If you would invest  2,888  in SPDR Bloomberg Barclays on September 12, 2024 and sell it today you would lose (54.00) from holding SPDR Bloomberg Barclays or give up 1.87% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

SPDR Bloomberg Barclays  vs.  Janus Henderson Mortgage Backe

SPDR Bloomberg Barclays

Risk-Adjusted Performance

0 of 100

Very Weak

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

Janus Henderson Mort

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Janus Henderson Mortgage Backed has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental drivers, Janus Henderson is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with SPDR Bloomberg and Janus Henderson

The main advantage of trading using opposite SPDR Bloomberg and Janus Henderson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Bloomberg 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 SPDR Bloomberg Barclays and Janus Henderson Mortgage Backed 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.