Correlation Between Janus Global and Rems International

Can any of the company-specific risk be diversified away by investing in both Janus Global and Rems International 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 Rems International 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 Rems International Real, you can compare the effects of market volatilities on Janus Global and Rems International 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 Rems International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Global and Rems International.

Diversification Opportunities for Janus Global and Rems International

0.89

Correlation Coefficient

Janus Global  Rems International

Very poor diversification

The 3 months correlation between Janus and Rems is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Janus Global Real and Rems International Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rems International Real 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 Rems International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rems International Real has no effect on the direction of Janus Global i.e., Janus Global and Rems International go up and down completely randomly.

Pair Corralation between Janus Global and Rems International

Assuming the 90 days horizon Janus Global Real is expected to generate 1.11 times more return on investment than Rems International. However, Janus Global is 1.11 times more volatile than Rems International Real. It trades about 0.09 of its potential returns per unit of risk. Rems International Real is currently generating about -0.01 per unit of risk. If you would invest  1,139  in Janus Global Real on October 24, 2024 and sell it today you would earn a total of  16.00  from holding Janus Global Real or generate 1.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	94.74%
Values	Daily Returns

Janus Global Real  vs.  Rems International Real

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.

Rems International Real

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Rems International Real has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's technical and fundamental 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 Global and Rems International

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

The idea behind Janus Global Real and Rems International Real 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.