Correlation Between Allianzgi Nfj and Janus Global

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

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

Diversification Opportunities for Allianzgi Nfj and Janus Global

0.82

Correlation Coefficient

Allianzgi Nfj  Janus Global

Very poor diversification

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

Pair Corralation between Allianzgi Nfj and Janus Global

Assuming the 90 days horizon Allianzgi Nfj is expected to generate 3.5 times less return on investment than Janus Global. In addition to that, Allianzgi Nfj is 1.73 times more volatile than Janus Global Research. It trades about 0.01 of its total potential returns per unit of risk. Janus Global Research is currently generating about 0.09 per unit of volatility. If you would invest  8,617  in Janus Global Research on September 3, 2024 and sell it today you would earn a total of  3,600  from holding Janus Global Research or generate 41.78% return on investment over 90 days.

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

Allianzgi Nfj Small Cap  vs.  Janus Global Research

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 January 2025.

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 January 2025.

Pair Trading with Allianzgi Nfj and Janus Global

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

The idea behind Allianzgi Nfj Small Cap and Janus Global Research 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 CEOs Directory module to screen CEOs from public companies around the world.