Correlation Between Janus Henderson and ClearBridge Sustainable

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

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

Diversification Opportunities for Janus Henderson and ClearBridge Sustainable

-0.5

Correlation Coefficient

Janus Henderson  ClearBridge Sustainable

Very good diversification

The 3 months correlation between Janus and ClearBridge is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Janus Henderson SmallMid and ClearBridge Sustainable Infras in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ClearBridge Sustainable and Janus Henderson 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 Henderson SmallMid are associated (or correlated) with ClearBridge Sustainable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ClearBridge Sustainable has no effect on the direction of Janus Henderson i.e., Janus Henderson and ClearBridge Sustainable go up and down completely randomly.

Pair Corralation between Janus Henderson and ClearBridge Sustainable

Given the investment horizon of 90 days Janus Henderson SmallMid is expected to under-perform the ClearBridge Sustainable. In addition to that, Janus Henderson is 1.56 times more volatile than ClearBridge Sustainable Infrastructure. It trades about -0.3 of its total potential returns per unit of risk. ClearBridge Sustainable Infrastructure is currently generating about -0.28 per unit of volatility. If you would invest  2,383  in ClearBridge Sustainable Infrastructure on October 7, 2024 and sell it today you would lose (108.00) from holding ClearBridge Sustainable Infrastructure or give up 4.53% of portfolio value over 90 days.

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

Janus Henderson SmallMid  vs.  ClearBridge Sustainable Infras

Janus Henderson SmallMid

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Janus Henderson SmallMid are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting primary indicators, Janus Henderson may actually be approaching a critical reversion point that can send shares even higher in February 2025.

ClearBridge Sustainable

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ClearBridge Sustainable Infrastructure has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest unsteady performance, the Etf's technical and fundamental indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the ETF retail investors.

Pair Trading with Janus Henderson and ClearBridge Sustainable

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

The idea behind Janus Henderson SmallMid and ClearBridge Sustainable Infrastructure 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.