Correlation Between GATX and Janus International
Can any of the company-specific risk be diversified away by investing in both GATX and Janus International 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 GATX and Janus International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GATX Corporation and Janus International Group, you can compare the effects of market volatilities on GATX and Janus International 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 GATX with a short position of Janus International. Check out your portfolio center. Please also check ongoing floating volatility patterns of GATX and Janus International.
Diversification Opportunities for GATX and Janus International
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GATX and Janus is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding GATX Corp. and Janus International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus International and GATX 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 GATX Corporation are associated (or correlated) with Janus International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus International has no effect on the direction of GATX i.e., GATX and Janus International go up and down completely randomly.
Pair Corralation between GATX and Janus International
Given the investment horizon of 90 days GATX is expected to generate 2.57 times less return on investment than Janus International. But when comparing it to its historical volatility, GATX Corporation is 2.34 times less risky than Janus International. It trades about 0.13 of its potential returns per unit of risk. Janus International Group is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 799.00 in Janus International Group on June 13, 2025 and sell it today you would earn a total of 208.00 from holding Janus International Group or generate 26.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GATX Corp. vs. Janus International Group
Performance |
| Timeline |
| GATX |
| Janus International |
GATX and Janus International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GATX and Janus International
The main advantage of trading using opposite GATX and Janus International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GATX position performs unexpectedly, Janus International 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 International will offset losses from the drop in Janus International's long position.| GATX vs. McGrath RentCorp | GATX vs. Custom Truck One | GATX vs. Herc Holdings | GATX vs. Alta Equipment Group |
| Janus International vs. Gibraltar Industries | Janus International vs. Quanex Building Products | Janus International vs. Jeld Wen Holding | Janus International vs. Perma Pipe International Holdings |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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