Correlation Between Xsabx and Janus Global

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

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

Diversification Opportunities for Xsabx and Janus Global

-0.22

Correlation Coefficient

Xsabx  Janus Global

Very good diversification

The 3 months correlation between Xsabx and Janus is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Xsabx and Janus Global Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Global Technology and Xsabx 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 Xsabx 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 Technology has no effect on the direction of Xsabx i.e., Xsabx and Janus Global go up and down completely randomly.

Pair Corralation between Xsabx and Janus Global

Assuming the 90 days horizon Xsabx is expected to generate 0.34 times more return on investment than Janus Global. However, Xsabx is 2.98 times less risky than Janus Global. It trades about 0.2 of its potential returns per unit of risk. Janus Global Technology is currently generating about -0.01 per unit of risk. If you would invest  862.00  in Xsabx on September 26, 2024 and sell it today you would earn a total of  129.00  from holding Xsabx or generate 14.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.21%
Values	Daily Returns

Xsabx  vs.  Janus Global Technology

Xsabx

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Xsabx are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental drivers, Xsabx may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Janus Global Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Janus Global Technology has generated negative risk-adjusted returns adding no value to fund investors. 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.

Pair Trading with Xsabx and Janus Global

The main advantage of trading using opposite Xsabx and Janus Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xsabx 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 Xsabx and Janus Global Technology 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.