Correlation Between Janus Henderson and Prudential Jennison
Can any of the company-specific risk be diversified away by investing in both Janus Henderson and Prudential Jennison 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 Henderson and Prudential Jennison into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Janus Henderson Global and Prudential Jennison Global, you can compare the effects of market volatilities on Janus Henderson and Prudential Jennison 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 Henderson with a short position of Prudential Jennison. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Henderson and Prudential Jennison.
Diversification Opportunities for Janus Henderson and Prudential Jennison
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Janus and Prudential is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Janus Henderson Global and Prudential Jennison Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prudential Jennison and Janus Henderson 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 Henderson Global are associated (or correlated) with Prudential Jennison. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prudential Jennison has no effect on the direction of Janus Henderson i.e., Janus Henderson and Prudential Jennison go up and down completely randomly.
Pair Corralation between Janus Henderson and Prudential Jennison
Assuming the 90 days horizon Janus Henderson Global is expected to generate 1.17 times more return on investment than Prudential Jennison. However, Janus Henderson is 1.17 times more volatile than Prudential Jennison Global. It trades about 0.07 of its potential returns per unit of risk. Prudential Jennison Global is currently generating about 0.06 per unit of risk. If you would invest 1,319 in Janus Henderson Global on September 25, 2025 and sell it today you would earn a total of 453.00 from holding Janus Henderson Global or generate 34.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Janus Henderson Global vs. Prudential Jennison Global
Performance |
| Timeline |
| Janus Henderson Global |
| Prudential Jennison |
Janus Henderson and Prudential Jennison Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus Henderson and Prudential Jennison
The main advantage of trading using opposite Janus Henderson and Prudential Jennison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus Henderson position performs unexpectedly, Prudential Jennison 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 Prudential Jennison will offset losses from the drop in Prudential Jennison's long position.| Janus Henderson vs. Janus Henderson Global | Janus Henderson vs. Janus Henderson Global | Janus Henderson vs. Alpine Global Infrastructure | Janus Henderson vs. Fiera Capital Global |
| Prudential Jennison vs. Hennessy Total Return | Prudential Jennison vs. Virtus Select Mlp | Prudential Jennison vs. Amg Fq Long Short | Prudential Jennison vs. Ariel Global 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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