Correlation Between Janus Triton and Mfs Mid

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

Diversification Opportunities for Janus Triton and Mfs Mid

0.95

Correlation Coefficient

Janus Triton  Mfs Mid

Almost no diversification

The 3 months correlation between Janus and MFS is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Janus Triton Fund and Mfs Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs 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 Mfs Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Mid Cap has no effect on the direction of Janus Triton i.e., Janus Triton and Mfs Mid go up and down completely randomly.

Pair Corralation between Janus Triton and Mfs Mid

Assuming the 90 days horizon Janus Triton Fund is expected to under-perform the Mfs Mid. In addition to that, Janus Triton is 1.38 times more volatile than Mfs Mid Cap. It trades about -0.16 of its total potential returns per unit of risk. Mfs Mid Cap is currently generating about -0.19 per unit of volatility. If you would invest  3,245  in Mfs Mid Cap on December 4, 2024 and sell it today you would lose (84.00) from holding Mfs Mid Cap or give up 2.59% of portfolio value over 90 days.

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

Janus Triton Fund  vs.  Mfs Mid Cap

Janus Triton

Risk-Adjusted Performance

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 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.

Mfs Mid Cap

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mfs Mid Cap 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 forward-looking signals 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.

Pair Trading with Janus Triton and Mfs Mid

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

The idea behind Janus Triton Fund and Mfs 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.

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.