Correlation Between Janus Henderson and ETRACS Quarterly

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Can any of the company-specific risk be diversified away by investing in both Janus Henderson and ETRACS Quarterly 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 ETRACS Quarterly 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 ETRACS Quarterly Pay, you can compare the effects of market volatilities on Janus Henderson and ETRACS Quarterly 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 ETRACS Quarterly. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Henderson and ETRACS Quarterly.

Diversification Opportunities for Janus Henderson and ETRACS Quarterly

-0.53
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Janus and ETRACS is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Janus Henderson Global and ETRACS Quarterly Pay in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ETRACS Quarterly Pay 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 ETRACS Quarterly. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ETRACS Quarterly Pay has no effect on the direction of Janus Henderson i.e., Janus Henderson and ETRACS Quarterly go up and down completely randomly.

Pair Corralation between Janus Henderson and ETRACS Quarterly

Given the investment horizon of 90 days Janus Henderson is expected to generate 4.88 times less return on investment than ETRACS Quarterly. In addition to that, Janus Henderson is 1.23 times more volatile than ETRACS Quarterly Pay. It trades about 0.02 of its total potential returns per unit of risk. ETRACS Quarterly Pay is currently generating about 0.12 per unit of volatility. If you would invest  5,556  in ETRACS Quarterly Pay on August 28, 2025 and sell it today you would earn a total of  363.90  from holding ETRACS Quarterly Pay or generate 6.55% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Janus Henderson Global  vs.  ETRACS Quarterly Pay

 Performance 
       Timeline  
Janus Henderson Global 

Risk-Adjusted Performance

Mild

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Janus Henderson Global are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, Janus Henderson is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.
ETRACS Quarterly Pay 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in ETRACS Quarterly Pay are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, ETRACS Quarterly is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Janus Henderson and ETRACS Quarterly Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Janus Henderson and ETRACS Quarterly

The main advantage of trading using opposite Janus Henderson and ETRACS Quarterly positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus Henderson position performs unexpectedly, ETRACS Quarterly 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 ETRACS Quarterly will offset losses from the drop in ETRACS Quarterly's long position.
The idea behind Janus Henderson Global and ETRACS Quarterly Pay pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.

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