Correlation Between JIB and Janus Henderson

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

By analyzing existing cross correlation between JIB and Janus Henderson Mortgage Backed, you can compare the effects of market volatilities on JIB and Janus Henderson 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 JIB with a short position of Janus Henderson. Check out your portfolio center. Please also check ongoing floating volatility patterns of JIB and Janus Henderson.

Diversification Opportunities for JIB and Janus Henderson

0.11

Correlation Coefficient

JIB  Janus Henderson

Average diversification

The 3 months correlation between JIB and Janus is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding JIB and Janus Henderson Mortgage Backe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Henderson Mort and JIB 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 JIB are associated (or correlated) with Janus Henderson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Henderson Mort has no effect on the direction of JIB i.e., JIB and Janus Henderson go up and down completely randomly.

Pair Corralation between JIB and Janus Henderson

If you would invest  4,414  in Janus Henderson Mortgage Backed on October 26, 2024 and sell it today you would earn a total of  9.00  from holding Janus Henderson Mortgage Backed or generate 0.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	5.56%
Values	Daily Returns

JIB  vs.  Janus Henderson Mortgage Backe

JIB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days JIB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong forward indicators, JIB is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Janus Henderson Mort

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Janus Henderson Mortgage Backed has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental drivers, Janus Henderson is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with JIB and Janus Henderson

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

The idea behind JIB and Janus Henderson Mortgage Backed 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.