Correlation Between Janus Global and Mfs E

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

By analyzing existing cross correlation between Janus Global Real and Mfs E Equity, you can compare the effects of market volatilities on Janus Global and Mfs E 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 Mfs E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Global and Mfs E.

Diversification Opportunities for Janus Global and Mfs E

-0.75

Correlation Coefficient

Janus Global  Mfs E

Pay attention - limited upside

The 3 months correlation between Janus and Mfs is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Janus Global Real and Mfs E Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs E Equity 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 Real are associated (or correlated) with Mfs E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs E Equity has no effect on the direction of Janus Global i.e., Janus Global and Mfs E go up and down completely randomly.

Pair Corralation between Janus Global and Mfs E

Assuming the 90 days horizon Janus Global Real is expected to under-perform the Mfs E. But the mutual fund apears to be less risky and, when comparing its historical volatility, Janus Global Real is 1.02 times less risky than Mfs E. The mutual fund trades about -0.16 of its potential returns per unit of risk. The Mfs E Equity is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  5,258  in Mfs E Equity on September 17, 2024 and sell it today you would earn a total of  381.00  from holding Mfs E Equity or generate 7.25% return on investment over 90 days.

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

Janus Global Real  vs.  Mfs E Equity

Janus Global Real

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Janus Global Real 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.

Mfs E Equity

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mfs E Equity are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Mfs E may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Janus Global and Mfs E

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

The idea behind Janus Global Real and Mfs E Equity 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.