Correlation Between Janus High-yield and Intermediate-term
Can any of the company-specific risk be diversified away by investing in both Janus High-yield and Intermediate-term 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 Intermediate-term 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 Intermediate Term Tax Free Bond, you can compare the effects of market volatilities on Janus High-yield and Intermediate-term 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 Intermediate-term. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus High-yield and Intermediate-term.
Diversification Opportunities for Janus High-yield and Intermediate-term
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Janus and Intermediate-term is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Janus High Yield Fund and Intermediate Term Tax Free Bon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intermediate Term Tax 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 Intermediate-term. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intermediate Term Tax has no effect on the direction of Janus High-yield i.e., Janus High-yield and Intermediate-term go up and down completely randomly.
Pair Corralation between Janus High-yield and Intermediate-term
Assuming the 90 days horizon Janus High Yield Fund is expected to generate 1.47 times more return on investment than Intermediate-term. However, Janus High-yield is 1.47 times more volatile than Intermediate Term Tax Free Bond. It trades about 0.26 of its potential returns per unit of risk. Intermediate Term Tax Free Bond is currently generating about 0.18 per unit of risk. If you would invest 723.00 in Janus High Yield Fund on June 6, 2025 and sell it today you would earn a total of 21.00 from holding Janus High Yield Fund or generate 2.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Janus High Yield Fund vs. Intermediate Term Tax Free Bon
Performance |
| Timeline |
| Janus High Yield |
| Intermediate Term Tax |
Janus High-yield and Intermediate-term Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus High-yield and Intermediate-term
The main advantage of trading using opposite Janus High-yield and Intermediate-term positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus High-yield position performs unexpectedly, Intermediate-term 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 Intermediate-term will offset losses from the drop in Intermediate-term'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 |
| Intermediate-term vs. Ab Value Fund | Intermediate-term vs. Fabwx | Intermediate-term vs. Fkhemx | Intermediate-term vs. Abr 7525 Volatility |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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