Correlation Between Janus Global and Astor Longshort
Can any of the company-specific risk be diversified away by investing in both Janus Global and Astor Longshort 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 Global and Astor Longshort into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Janus Global Technology and Astor Longshort Fund, you can compare the effects of market volatilities on Janus Global and Astor Longshort 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 Global with a short position of Astor Longshort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Global and Astor Longshort.
Diversification Opportunities for Janus Global and Astor Longshort
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Janus and Astor is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Janus Global Technology and Astor Longshort Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Longshort and Janus Global 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 Global Technology are associated (or correlated) with Astor Longshort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astor Longshort has no effect on the direction of Janus Global i.e., Janus Global and Astor Longshort go up and down completely randomly.
Pair Corralation between Janus Global and Astor Longshort
Assuming the 90 days horizon Janus Global Technology is expected to generate 1.83 times more return on investment than Astor Longshort. However, Janus Global is 1.83 times more volatile than Astor Longshort Fund. It trades about -0.01 of its potential returns per unit of risk. Astor Longshort Fund is currently generating about -0.03 per unit of risk. If you would invest 6,593 in Janus Global Technology on September 26, 2024 and sell it today you would lose (310.00) from holding Janus Global Technology or give up 4.7% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Janus Global Technology vs. Astor Longshort Fund
Performance |
Timeline |
Janus Global Technology |
Astor Longshort |
Janus Global and Astor Longshort Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Janus Global and Astor Longshort
The main advantage of trading using opposite Janus Global and Astor Longshort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus Global position performs unexpectedly, Astor Longshort 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 Astor Longshort will offset losses from the drop in Astor Longshort's long position.Janus Global vs. Veea Inc | Janus Global vs. VivoPower International PLC | Janus Global vs. Janus Research Fund | Janus Global vs. Janus Research Fund |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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