Correlation Between Janus High and Large Cap
Can any of the company-specific risk be diversified away by investing in both Janus High and Large Cap 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 and Large Cap 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 Large Cap Fund, you can compare the effects of market volatilities on Janus High and Large Cap 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 with a short position of Large Cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus High and Large Cap.
Diversification Opportunities for Janus High and Large Cap
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Janus and Large is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Janus High Yield Fund and Large Cap Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Large Cap Fund and Janus High 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 Large Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Large Cap Fund has no effect on the direction of Janus High i.e., Janus High and Large Cap go up and down completely randomly.
Pair Corralation between Janus High and Large Cap
Assuming the 90 days horizon Janus High is expected to generate 16.67 times less return on investment than Large Cap. But when comparing it to its historical volatility, Janus High Yield Fund is 10.47 times less risky than Large Cap. It trades about 0.08 of its potential returns per unit of risk. Large Cap Fund is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,134 in Large Cap Fund on October 7, 2025 and sell it today you would earn a total of 205.00 from holding Large Cap Fund or generate 18.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Janus High Yield Fund vs. Large Cap Fund
Performance |
| Timeline |
| Janus High Yield |
| Large Cap Fund |
Janus High and Large Cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus High and Large Cap
The main advantage of trading using opposite Janus High and Large Cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus High position performs unexpectedly, Large Cap 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 Large Cap will offset losses from the drop in Large Cap's long position.| Janus High vs. Janus High Yield Fund | Janus High vs. Janus High Yield Fund | Janus High vs. Janus High Yield Fund | Janus High vs. International Value Fund |
| Large Cap vs. Mfs Blended Research | Large Cap vs. Mid Cap Growth | Large Cap vs. Mid Cap Growth | Large Cap vs. Janus High Yield 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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