Correlation Between Growth Allocation and Janus High-yield
Can any of the company-specific risk be diversified away by investing in both Growth Allocation and Janus High-yield 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 Growth Allocation and Janus High-yield into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Allocation Fund and Janus High Yield Fund, you can compare the effects of market volatilities on Growth Allocation and Janus High-yield 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 Growth Allocation with a short position of Janus High-yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Allocation and Janus High-yield.
Diversification Opportunities for Growth Allocation and Janus High-yield
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Growth and JANUS is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Growth Allocation Fund and Janus High Yield Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus High Yield and Growth Allocation 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 Growth Allocation Fund are associated (or correlated) with Janus High-yield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus High Yield has no effect on the direction of Growth Allocation i.e., Growth Allocation and Janus High-yield go up and down completely randomly.
Pair Corralation between Growth Allocation and Janus High-yield
Assuming the 90 days horizon Growth Allocation Fund is expected to generate 2.83 times more return on investment than Janus High-yield. However, Growth Allocation is 2.83 times more volatile than Janus High Yield Fund. It trades about 0.16 of its potential returns per unit of risk. Janus High Yield Fund is currently generating about 0.26 per unit of risk. If you would invest 1,332 in Growth Allocation Fund on June 5, 2025 and sell it today you would earn a total of 64.00 from holding Growth Allocation Fund or generate 4.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Growth Allocation Fund vs. Janus High Yield Fund
Performance |
| Timeline |
| Growth Allocation |
| Janus High Yield |
Growth Allocation and Janus High-yield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Allocation and Janus High-yield
The main advantage of trading using opposite Growth Allocation and Janus High-yield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Allocation position performs unexpectedly, Janus High-yield 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 High-yield will offset losses from the drop in Janus High-yield's long position.| Growth Allocation vs. Aew Real Estate | Growth Allocation vs. Nomura Real Estate | Growth Allocation vs. Baron Real Estate | Growth Allocation vs. Nuveen Real Estate |
| Janus High-yield vs. Wells Fargo Government | Janus High-yield vs. Franklin Adjustable Government | Janus High-yield vs. Columbia Government Mortgage | Janus High-yield vs. Payden Government Fund |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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