Correlation Between Janus Global and Oppenheimer Senior

Can any of the company-specific risk be diversified away by investing in both Janus Global and Oppenheimer Senior 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 Oppenheimer Senior 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 Oppenheimer Senior Floating, you can compare the effects of market volatilities on Janus Global and Oppenheimer Senior 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 Oppenheimer Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Global and Oppenheimer Senior.

Diversification Opportunities for Janus Global and Oppenheimer Senior

0.65

Correlation Coefficient

Janus Global  Oppenheimer Senior

Poor diversification

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

Pair Corralation between Janus Global and Oppenheimer Senior

Assuming the 90 days horizon Janus Global Unconstrained is expected to under-perform the Oppenheimer Senior. But the mutual fund apears to be less risky and, when comparing its historical volatility, Janus Global Unconstrained is 1.93 times less risky than Oppenheimer Senior. The mutual fund trades about -0.1 of its potential returns per unit of risk. The Oppenheimer Senior Floating is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  659.00  in Oppenheimer Senior Floating on October 11, 2024 and sell it today you would earn a total of  0.00  from holding Oppenheimer Senior Floating or generate 0.0% return on investment over 90 days.

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

Janus Global Unconstrained  vs.  Oppenheimer Senior Floating

Janus Global Unconst

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Janus Global Unconstrained are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Janus Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Oppenheimer Senior

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Oppenheimer Senior Floating are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Oppenheimer Senior is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Janus Global and Oppenheimer Senior

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

The idea behind Janus Global Unconstrained and Oppenheimer Senior Floating 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.