Correlation Between Janus High-yield and Multi Manager
Can any of the company-specific risk be diversified away by investing in both Janus High-yield and Multi Manager 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 Multi Manager 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 Multi Manager High Yield, you can compare the effects of market volatilities on Janus High-yield and Multi Manager 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 Multi Manager. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus High-yield and Multi Manager.
Diversification Opportunities for Janus High-yield and Multi Manager
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Janus and Multi is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Janus High Yield Fund and Multi Manager High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Manager High 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 Multi Manager. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Manager High has no effect on the direction of Janus High-yield i.e., Janus High-yield and Multi Manager go up and down completely randomly.
Pair Corralation between Janus High-yield and Multi Manager
Assuming the 90 days horizon Janus High Yield Fund is expected to generate 1.39 times more return on investment than Multi Manager. However, Janus High-yield is 1.39 times more volatile than Multi Manager High Yield. It trades about 0.43 of its potential returns per unit of risk. Multi Manager High Yield is currently generating about 0.44 per unit of risk. If you would invest 691.00 in Janus High Yield Fund on April 18, 2025 and sell it today you would earn a total of 48.00 from holding Janus High Yield Fund or generate 6.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.36% |
| Values | Daily Returns |
Janus High Yield Fund vs. Multi Manager High Yield
Performance |
| Timeline |
| Janus High Yield |
| Multi Manager High |
Janus High-yield and Multi Manager Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus High-yield and Multi Manager
The main advantage of trading using opposite Janus High-yield and Multi Manager positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus High-yield position performs unexpectedly, Multi Manager 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 Multi Manager will offset losses from the drop in Multi Manager's long position.| Janus High-yield vs. Janus High Yield Fund | Janus High-yield vs. Janus Henderson High Yield | Janus High-yield vs. Janus High Yield Fund | Janus High-yield vs. Jpmorgan High Yield |
| Multi Manager vs. T Rowe Price | Multi Manager vs. Chase Growth Fund | Multi Manager vs. Pace Large Growth | Multi Manager vs. Pnc International Growth |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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