Correlation Between Janus Triton and Aqr Small
Can any of the company-specific risk be diversified away by investing in both Janus Triton and Aqr Small 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 Triton and Aqr Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Janus Triton Fund and Aqr Small Cap, you can compare the effects of market volatilities on Janus Triton and Aqr Small 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 Triton with a short position of Aqr Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Triton and Aqr Small.
Diversification Opportunities for Janus Triton and Aqr Small
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Janus and Aqr is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Janus Triton Fund and Aqr Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Small Cap and Janus Triton 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 Triton Fund are associated (or correlated) with Aqr Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Small Cap has no effect on the direction of Janus Triton i.e., Janus Triton and Aqr Small go up and down completely randomly.
Pair Corralation between Janus Triton and Aqr Small
Assuming the 90 days horizon Janus Triton is expected to generate 1.44 times less return on investment than Aqr Small. But when comparing it to its historical volatility, Janus Triton Fund is 1.45 times less risky than Aqr Small. It trades about 0.33 of its potential returns per unit of risk. Aqr Small Cap is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 1,864 in Aqr Small Cap on April 3, 2025 and sell it today you would earn a total of 142.00 from holding Aqr Small Cap or generate 7.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Janus Triton Fund vs. Aqr Small Cap
Performance |
| Timeline |
| Janus Triton |
| Aqr Small Cap |
Janus Triton and Aqr Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus Triton and Aqr Small
The main advantage of trading using opposite Janus Triton and Aqr Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus Triton position performs unexpectedly, Aqr Small 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 Aqr Small will offset losses from the drop in Aqr Small's long position.| Janus Triton vs. Goldman Sachs Bond | Janus Triton vs. Barings Active Short | Janus Triton vs. Morningstar Defensive Bond | Janus Triton vs. Ab Bond Inflation |
| Aqr Small vs. Gmo Resources | Aqr Small vs. Firsthand Alternative Energy | Aqr Small vs. Icon Natural Resources | Aqr Small vs. Franklin Natural Resources |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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