Correlation Between Janus Growth and Sit Dividend

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

By analyzing existing cross correlation between Janus Growth And and Sit Dividend Growth, you can compare the effects of market volatilities on Janus Growth and Sit Dividend 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 Growth with a short position of Sit Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Growth and Sit Dividend.

Diversification Opportunities for Janus Growth and Sit Dividend

0.82

Correlation Coefficient

Janus Growth  Sit Dividend

Very poor diversification

The 3 months correlation between Janus and Sit is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Janus Growth And and Sit Dividend Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit Dividend Growth and Janus Growth 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 Growth And are associated (or correlated) with Sit Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit Dividend Growth has no effect on the direction of Janus Growth i.e., Janus Growth and Sit Dividend go up and down completely randomly.

Pair Corralation between Janus Growth and Sit Dividend

Assuming the 90 days horizon Janus Growth is expected to generate 1.52 times less return on investment than Sit Dividend. In addition to that, Janus Growth is 1.13 times more volatile than Sit Dividend Growth. It trades about 0.03 of its total potential returns per unit of risk. Sit Dividend Growth is currently generating about 0.05 per unit of volatility. If you would invest  1,300  in Sit Dividend Growth on December 3, 2024 and sell it today you would earn a total of  299.00  from holding Sit Dividend Growth or generate 23.0% return on investment over 90 days.

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

Janus Growth And  vs.  Sit Dividend Growth

Janus Growth And

Risk-Adjusted Performance

Very Weak

Over the last 90 days Janus Growth And has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Sit Dividend Growth

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sit Dividend Growth has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Janus Growth and Sit Dividend

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

The idea behind Janus Growth And and Sit Dividend Growth 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.