Correlation Between Janus Triton and Eagle Mid

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

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

Diversification Opportunities for Janus Triton and Eagle Mid

0.7

Correlation Coefficient

Janus Triton  Eagle Mid

Poor diversification

The 3 months correlation between Janus and Eagle is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Janus Triton Fund and Eagle Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Mid Cap and Janus Triton 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 Triton Fund are associated (or correlated) with Eagle Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Mid Cap has no effect on the direction of Janus Triton i.e., Janus Triton and Eagle Mid go up and down completely randomly.

Pair Corralation between Janus Triton and Eagle Mid

Assuming the 90 days horizon Janus Triton is expected to generate 25.87 times less return on investment than Eagle Mid. In addition to that, Janus Triton is 1.16 times more volatile than Eagle Mid Cap. It trades about 0.01 of its total potential returns per unit of risk. Eagle Mid Cap is currently generating about 0.22 per unit of volatility. If you would invest  7,315  in Eagle Mid Cap on September 13, 2024 and sell it today you would earn a total of  1,059  from holding Eagle Mid Cap or generate 14.48% return on investment over 90 days.

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

Janus Triton Fund  vs.  Eagle Mid Cap

Janus Triton

Risk-Adjusted Performance

0 of 100

Very Weak

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

Eagle Mid Cap

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Eagle Mid Cap are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Eagle Mid showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Janus Triton and Eagle Mid

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

The idea behind Janus Triton Fund and Eagle Mid Cap 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.