Correlation Between Janus Global and Idx Risk-managed

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

By analyzing existing cross correlation between Janus Global Technology and Idx Risk Managed Bitcoin, you can compare the effects of market volatilities on Janus Global and Idx Risk-managed 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 Global with a short position of Idx Risk-managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Global and Idx Risk-managed.

Diversification Opportunities for Janus Global and Idx Risk-managed

0.35

Correlation Coefficient

Janus Global  Idx Risk-managed

Weak diversification

The 3 months correlation between Janus and Idx is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Janus Global Technology and Idx Risk Managed Bitcoin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Idx Risk Managed and Janus Global 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 Global Technology are associated (or correlated) with Idx Risk-managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Idx Risk Managed has no effect on the direction of Janus Global i.e., Janus Global and Idx Risk-managed go up and down completely randomly.

Pair Corralation between Janus Global and Idx Risk-managed

Assuming the 90 days horizon Janus Global Technology is expected to generate 0.84 times more return on investment than Idx Risk-managed. However, Janus Global Technology is 1.19 times less risky than Idx Risk-managed. It trades about -0.07 of its potential returns per unit of risk. Idx Risk Managed Bitcoin is currently generating about -0.12 per unit of risk. If you would invest  6,248  in Janus Global Technology on December 19, 2024 and sell it today you would lose (411.00) from holding Janus Global Technology or give up 6.58% of portfolio value over 90 days.

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

Janus Global Technology  vs.  Idx Risk Managed Bitcoin

Janus Global Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Janus Global Technology has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Idx Risk Managed

Risk-Adjusted Performance

Very Weak

Over the last 90 days Idx Risk Managed Bitcoin 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 fundamental 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.

Pair Trading with Janus Global and Idx Risk-managed

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

The idea behind Janus Global Technology and Idx Risk Managed Bitcoin 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.