Correlation Between Dow Jones and Janus Global
Can any of the company-specific risk be diversified away by investing in both Dow Jones 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 Dow Jones and Janus Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dow Jones Industrial and Janus Global Allocation, you can compare the effects of market volatilities on Dow Jones 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 Dow Jones with a short position of Janus Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Janus Global.
Diversification Opportunities for Dow Jones and Janus Global
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dow and Janus is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Janus Global Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Global Allocation and Dow Jones 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 Dow Jones Industrial 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 Allocation has no effect on the direction of Dow Jones i.e., Dow Jones and Janus Global go up and down completely randomly.
Pair Corralation between Dow Jones and Janus Global
Assuming the 90 days trading horizon Dow Jones is expected to generate 1.68 times less return on investment than Janus Global. In addition to that, Dow Jones is 1.28 times more volatile than Janus Global Allocation. It trades about 0.04 of its total potential returns per unit of risk. Janus Global Allocation is currently generating about 0.08 per unit of volatility. If you would invest 1,318 in Janus Global Allocation on May 30, 2025 and sell it today you would earn a total of 142.00 from holding Janus Global Allocation or generate 10.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Dow Jones Industrial vs. Janus Global Allocation
Performance |
| Timeline |
Dow Jones and Janus Global Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Janus Global Allocation
Pair trading matchups for Janus Global
Pair Trading with Dow Jones and Janus Global
The main advantage of trading using opposite Dow Jones and Janus Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones 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.| Dow Jones vs. City Office REIT | Dow Jones vs. KNOT Offshore Partners | Dow Jones vs. Getty Copper | Dow Jones vs. Titan America SA |
| Janus Global vs. Janus Global Allocation | Janus Global vs. Janus Global Allocation | Janus Global vs. Janus Global Life | Janus Global vs. Janus Global Life |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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