Correlation Between Janus Global and Allianzgi Nfj

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

By analyzing existing cross correlation between Janus Global Research and Allianzgi Nfj Small Cap, you can compare the effects of market volatilities on Janus Global and Allianzgi Nfj 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 Allianzgi Nfj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Global and Allianzgi Nfj.

Diversification Opportunities for Janus Global and Allianzgi Nfj

0.82

Correlation Coefficient

Janus Global  Allianzgi Nfj

Very poor diversification

The 3 months correlation between Janus and Allianzgi is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Janus Global Research and Allianzgi Nfj Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Nfj Small 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 Research are associated (or correlated) with Allianzgi Nfj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Nfj Small has no effect on the direction of Janus Global i.e., Janus Global and Allianzgi Nfj go up and down completely randomly.

Pair Corralation between Janus Global and Allianzgi Nfj

Assuming the 90 days horizon Janus Global is expected to generate 1.18 times less return on investment than Allianzgi Nfj. But when comparing it to its historical volatility, Janus Global Research is 1.53 times less risky than Allianzgi Nfj. It trades about 0.17 of its potential returns per unit of risk. Allianzgi Nfj Small Cap is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  1,247  in Allianzgi Nfj Small Cap on September 1, 2024 and sell it today you would earn a total of  115.00  from holding Allianzgi Nfj Small Cap or generate 9.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.44%
Values	Daily Returns

Janus Global Research  vs.  Allianzgi Nfj Small Cap

Janus Global Research

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Janus Global Research are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Janus Global may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Allianzgi Nfj Small

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Allianzgi Nfj Small Cap are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Allianzgi Nfj may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with Janus Global and Allianzgi Nfj

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

The idea behind Janus Global Research and Allianzgi Nfj Small Cap 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.