Correlation Between Janus Research and Perkins Select

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

By analyzing existing cross correlation between Janus Research Fund and Perkins Select Value, you can compare the effects of market volatilities on Janus Research and Perkins Select 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 Research with a short position of Perkins Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Research and Perkins Select.

Diversification Opportunities for Janus Research and Perkins Select

0.69

Correlation Coefficient

Janus Research  Perkins Select

Poor diversification

The 3 months correlation between Janus and PERKINS is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Janus Research Fund and Perkins Select Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perkins Select Value and Janus Research 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 Research Fund are associated (or correlated) with Perkins Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perkins Select Value has no effect on the direction of Janus Research i.e., Janus Research and Perkins Select go up and down completely randomly.

Pair Corralation between Janus Research and Perkins Select

Assuming the 90 days horizon Janus Research Fund is expected to generate 1.05 times more return on investment than Perkins Select. However, Janus Research is 1.05 times more volatile than Perkins Select Value. It trades about -0.07 of its potential returns per unit of risk. Perkins Select Value is currently generating about -0.23 per unit of risk. If you would invest  8,952  in Janus Research Fund on December 2, 2024 and sell it today you would lose (575.00) from holding Janus Research Fund or give up 6.42% of portfolio value over 90 days.

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

Janus Research Fund  vs.  Perkins Select Value

Janus Research

Risk-Adjusted Performance

Very Weak

Over the last 90 days Janus Research Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Janus Research is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Perkins Select Value

Risk-Adjusted Performance

Very Weak

Over the last 90 days Perkins Select Value 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.

Pair Trading with Janus Research and Perkins Select

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

The idea behind Janus Research Fund and Perkins Select Value 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.