Correlation Between Janus High-yield and All Asset
Can any of the company-specific risk be diversified away by investing in both Janus High-yield and All Asset 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 All Asset 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 All Asset Fund, you can compare the effects of market volatilities on Janus High-yield and All Asset 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 All Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus High-yield and All Asset.
Diversification Opportunities for Janus High-yield and All Asset
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Janus and All is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Janus High Yield Fund and All Asset Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on All Asset Fund 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 All Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of All Asset Fund has no effect on the direction of Janus High-yield i.e., Janus High-yield and All Asset go up and down completely randomly.
Pair Corralation between Janus High-yield and All Asset
Assuming the 90 days horizon Janus High-yield is expected to generate 1.34 times less return on investment than All Asset. But when comparing it to its historical volatility, Janus High Yield Fund is 1.9 times less risky than All Asset. It trades about 0.32 of its potential returns per unit of risk. All Asset Fund is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 1,114 in All Asset Fund on June 11, 2025 and sell it today you would earn a total of 56.00 from holding All Asset Fund or generate 5.03% 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. All Asset Fund
Performance |
| Timeline |
| Janus High Yield |
| All Asset Fund |
Janus High-yield and All Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus High-yield and All Asset
The main advantage of trading using opposite Janus High-yield and All Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus High-yield position performs unexpectedly, All Asset 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 All Asset will offset losses from the drop in All Asset's long position.| Janus High-yield vs. Janus Research Fund | Janus High-yield vs. Janus Research Fund | Janus High-yield vs. Janus Research Fund | Janus High-yield vs. Janus Research Fund |
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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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