Correlation Between Janus Overseas and Amg Yacktman

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

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

Diversification Opportunities for Janus Overseas and Amg Yacktman

0.59

Correlation Coefficient

Janus Overseas  Amg Yacktman

Very weak diversification

The 3 months correlation between Janus and Amg is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Janus Overseas Fund and Amg Yacktman Focused in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Yacktman Focused and Janus Overseas 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 Overseas Fund are associated (or correlated) with Amg Yacktman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Yacktman Focused has no effect on the direction of Janus Overseas i.e., Janus Overseas and Amg Yacktman go up and down completely randomly.

Pair Corralation between Janus Overseas and Amg Yacktman

Assuming the 90 days horizon Janus Overseas Fund is expected to generate 2.11 times more return on investment than Amg Yacktman. However, Janus Overseas is 2.11 times more volatile than Amg Yacktman Focused. It trades about 0.12 of its potential returns per unit of risk. Amg Yacktman Focused is currently generating about -0.16 per unit of risk. If you would invest  4,553  in Janus Overseas Fund on September 17, 2024 and sell it today you would earn a total of  74.00  from holding Janus Overseas Fund or generate 1.63% return on investment over 90 days.

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

Janus Overseas Fund  vs.  Amg Yacktman Focused

Janus Overseas

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Janus Overseas Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Janus Overseas is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Amg Yacktman Focused

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amg Yacktman Focused has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Amg Yacktman is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Janus Overseas and Amg Yacktman

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

The idea behind Janus Overseas Fund and Amg Yacktman Focused 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.