Correlation Between Simt Us and Janus Growth

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

By analyzing existing cross correlation between Simt Managed Volatility and Janus Growth And, you can compare the effects of market volatilities on Simt Us and Janus Growth 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 Simt Us with a short position of Janus Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Us and Janus Growth.

Diversification Opportunities for Simt Us and Janus Growth

0.82

Correlation Coefficient

Simt Us  Janus Growth

Very poor diversification

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

Pair Corralation between Simt Us and Janus Growth

Assuming the 90 days horizon Simt Managed Volatility is expected to generate 1.01 times more return on investment than Janus Growth. However, Simt Us is 1.01 times more volatile than Janus Growth And. It trades about -0.12 of its potential returns per unit of risk. Janus Growth And is currently generating about -0.13 per unit of risk. If you would invest  1,687  in Simt Managed Volatility on December 5, 2024 and sell it today you would lose (230.00) from holding Simt Managed Volatility or give up 13.63% of portfolio value over 90 days.

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

Simt Managed Volatility  vs.  Janus Growth And

Simt Managed Volatility

Risk-Adjusted Performance

Very Weak

Over the last 90 days Simt Managed Volatility 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 April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Janus Growth And

Risk-Adjusted Performance

Very Weak

Over the last 90 days Janus Growth And 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 basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Simt Us and Janus Growth

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

The idea behind Simt Managed Volatility and Janus Growth And 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.