Correlation Between Columbia Seligman and Janus Global

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

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

Diversification Opportunities for Columbia Seligman and Janus Global

0.0

Correlation Coefficient

Columbia Seligman  Janus Global

Pay attention - limited upside

The 3 months correlation between Columbia and Janus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Seligman Munications and Janus Global Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Global Life and Columbia Seligman 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 Columbia Seligman Munications 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 Life has no effect on the direction of Columbia Seligman i.e., Columbia Seligman and Janus Global go up and down completely randomly.

Pair Corralation between Columbia Seligman and Janus Global

If you would invest  6,746  in Janus Global Life on December 29, 2024 and sell it today you would earn a total of  161.00  from holding Janus Global Life or generate 2.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Columbia Seligman Munications  vs.  Janus Global Life

Columbia Seligman

Risk-Adjusted Performance

Very Weak

Over the last 90 days Columbia Seligman Munications has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Columbia Seligman is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Janus Global Life

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Janus Global Life are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong essential indicators, Janus Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Columbia Seligman and Janus Global

The main advantage of trading using opposite Columbia Seligman and Janus Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Seligman 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 Columbia Seligman Munications and Janus Global Life 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.