Correlation Between Janus High-yield and Congress Large
Can any of the company-specific risk be diversified away by investing in both Janus High-yield and Congress Large 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 Janus High-yield and Congress Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Janus High Yield Fund and Congress Large Cap, you can compare the effects of market volatilities on Janus High-yield and Congress Large 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 Janus High-yield with a short position of Congress Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus High-yield and Congress Large.
Diversification Opportunities for Janus High-yield and Congress Large
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Janus and CONGRESS is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Janus High Yield Fund and Congress Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Congress Large Cap and Janus High-yield 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 Janus High Yield Fund are associated (or correlated) with Congress Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Congress Large Cap has no effect on the direction of Janus High-yield i.e., Janus High-yield and Congress Large go up and down completely randomly.
Pair Corralation between Janus High-yield and Congress Large
Assuming the 90 days horizon Janus High-yield is expected to generate 2.08 times less return on investment than Congress Large. But when comparing it to its historical volatility, Janus High Yield Fund is 3.61 times less risky than Congress Large. It trades about 0.34 of its potential returns per unit of risk. Congress Large Cap is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 4,698 in Congress Large Cap on May 29, 2025 and sell it today you would earn a total of 399.00 from holding Congress Large Cap or generate 8.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Janus High Yield Fund vs. Congress Large Cap
Performance |
| Timeline |
| Janus High Yield |
| Congress Large Cap |
Janus High-yield and Congress Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus High-yield and Congress Large
The main advantage of trading using opposite Janus High-yield and Congress Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus High-yield position performs unexpectedly, Congress Large 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 Congress Large will offset losses from the drop in Congress Large's long position.| Janus High-yield vs. Janus Henderson High Yield | Janus High-yield vs. Janus Flexible Bond | Janus High-yield vs. Intech Managed Volatility | Janus High-yield vs. Janus Trarian Fund |
| Congress Large vs. Jhancock Disciplined Value | Congress Large vs. Large Cap Growth Profund | Congress Large vs. Nuveen Large Cap | Congress Large vs. Vest Large Cap |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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