Correlation Between Janus High-yield and Barings Global
Can any of the company-specific risk be diversified away by investing in both Janus High-yield and Barings Global 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 High-yield and Barings Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Janus High Yield Fund and Barings Global Floating, you can compare the effects of market volatilities on Janus High-yield and Barings Global 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 High-yield with a short position of Barings Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus High-yield and Barings Global.
Diversification Opportunities for Janus High-yield and Barings Global
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Janus and Barings is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Janus High Yield Fund and Barings Global Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings Global Floating and Janus High-yield 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 High Yield Fund are associated (or correlated) with Barings Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings Global Floating has no effect on the direction of Janus High-yield i.e., Janus High-yield and Barings Global go up and down completely randomly.
Pair Corralation between Janus High-yield and Barings Global
Assuming the 90 days horizon Janus High-yield is expected to generate 2.37 times less return on investment than Barings Global. In addition to that, Janus High-yield is 1.56 times more volatile than Barings Global Floating. It trades about 0.02 of its total potential returns per unit of risk. Barings Global Floating is currently generating about 0.07 per unit of volatility. If you would invest 858.00 in Barings Global Floating on December 29, 2024 and sell it today you would earn a total of 6.00 from holding Barings Global Floating or generate 0.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Janus High Yield Fund vs. Barings Global Floating
Performance |
Timeline |
Janus High Yield |
Barings Global Floating |
Janus High-yield and Barings Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Janus High-yield and Barings Global
The main advantage of trading using opposite Janus High-yield and Barings Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus High-yield position performs unexpectedly, Barings Global 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 Barings Global will offset losses from the drop in Barings Global's long position.Janus High-yield vs. Columbia Income Opportunities | Janus High-yield vs. Federated Bond Fund | Janus High-yield vs. Invesco Global Real | Janus High-yield vs. John Hancock Bond |
Barings Global vs. Barings Active Short | Barings Global vs. Barings Emerging Markets | Barings Global vs. Barings Emerging Markets | Barings Global vs. Barings Active Short |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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