Correlation Between Janus Enterprise and The Hartford

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Can any of the company-specific risk be diversified away by investing in both Janus Enterprise and The Hartford 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 Enterprise and The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Janus Enterprise Fund and The Hartford Midcap, you can compare the effects of market volatilities on Janus Enterprise and The Hartford 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 Enterprise with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Enterprise and The Hartford.

Diversification Opportunities for Janus Enterprise and The Hartford

0.99
  Correlation Coefficient

No risk reduction

The 3 months correlation between Janus and The is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Janus Enterprise Fund and The Hartford Midcap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Midcap and Janus Enterprise 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 Enterprise Fund are associated (or correlated) with The Hartford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Midcap has no effect on the direction of Janus Enterprise i.e., Janus Enterprise and The Hartford go up and down completely randomly.

Pair Corralation between Janus Enterprise and The Hartford

Assuming the 90 days horizon Janus Enterprise is expected to generate 1.64 times less return on investment than The Hartford. But when comparing it to its historical volatility, Janus Enterprise Fund is 1.22 times less risky than The Hartford. It trades about 0.23 of its potential returns per unit of risk. The Hartford Midcap is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest  2,649  in The Hartford Midcap on September 6, 2024 and sell it today you would earn a total of  475.00  from holding The Hartford Midcap or generate 17.93% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Janus Enterprise Fund  vs.  The Hartford Midcap

 Performance 
       Timeline  
Janus Enterprise 

Risk-Adjusted Performance

17 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Janus Enterprise Fund are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Janus Enterprise may actually be approaching a critical reversion point that can send shares even higher in January 2025.
Hartford Midcap 

Risk-Adjusted Performance

24 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in The Hartford Midcap are ranked lower than 24 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, The Hartford showed solid returns over the last few months and may actually be approaching a breakup point.

Janus Enterprise and The Hartford Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Janus Enterprise and The Hartford

The main advantage of trading using opposite Janus Enterprise and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus Enterprise position performs unexpectedly, The Hartford 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 The Hartford will offset losses from the drop in The Hartford's long position.
The idea behind Janus Enterprise Fund and The Hartford Midcap 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.

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