Correlation Between Janus Global and Summit Global

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

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

Diversification Opportunities for Janus Global and Summit Global

-0.65

Correlation Coefficient

Janus Global  Summit Global

Excellent diversification

The 3 months correlation between Janus and Summit is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Janus Global Unconstrained and Summit Global Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Global Investments 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 Unconstrained are associated (or correlated) with Summit Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Global Investments has no effect on the direction of Janus Global i.e., Janus Global and Summit Global go up and down completely randomly.

Pair Corralation between Janus Global and Summit Global

Assuming the 90 days horizon Janus Global Unconstrained is expected to generate 0.05 times more return on investment than Summit Global. However, Janus Global Unconstrained is 19.12 times less risky than Summit Global. It trades about 0.18 of its potential returns per unit of risk. Summit Global Investments is currently generating about -0.13 per unit of risk. If you would invest  884.00  in Janus Global Unconstrained on October 23, 2024 and sell it today you would earn a total of  12.00  from holding Janus Global Unconstrained or generate 1.36% return on investment over 90 days.

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

Janus Global Unconstrained  vs.  Summit Global Investments

Janus Global Unconst

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Janus Global Unconstrained are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Janus Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Summit Global Investments

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Summit Global Investments 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 forward indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Janus Global and Summit Global

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

The idea behind Janus Global Unconstrained and Summit Global Investments 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.