Correlation Between Janus Global and Valic Company
Can any of the company-specific risk be diversified away by investing in both Janus Global and Valic Company 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 Global and Valic Company into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Janus Global Allocation and Valic Company I, you can compare the effects of market volatilities on Janus Global and Valic Company 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 Global with a short position of Valic Company. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Global and Valic Company.
Diversification Opportunities for Janus Global and Valic Company
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Janus and Valic is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Janus Global Allocation and Valic Company I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valic Company I and Janus Global 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 Global Allocation are associated (or correlated) with Valic Company. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Valic Company I has no effect on the direction of Janus Global i.e., Janus Global and Valic Company go up and down completely randomly.
Pair Corralation between Janus Global and Valic Company
Assuming the 90 days horizon Janus Global is expected to generate 2.11 times less return on investment than Valic Company. But when comparing it to its historical volatility, Janus Global Allocation is 2.27 times less risky than Valic Company. It trades about 0.17 of its potential returns per unit of risk. Valic Company I is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,134 in Valic Company I on June 10, 2025 and sell it today you would earn a total of 130.00 from holding Valic Company I or generate 11.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Janus Global Allocation vs. Valic Company I
Performance |
| Timeline |
| Janus Global Allocation |
| Valic Company I |
Janus Global and Valic Company Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus Global and Valic Company
The main advantage of trading using opposite Janus Global and Valic Company positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus Global position performs unexpectedly, Valic Company 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 Valic Company will offset losses from the drop in Valic Company's long position.| Janus Global vs. Janus Global Allocation | Janus Global vs. Janus Global Allocation | Janus Global vs. Janus Global Select | Janus Global vs. Janus Triton Fund |
| Valic Company vs. Mid Cap Index | Valic Company vs. Mid Cap Strategic | Valic Company vs. Valic Company I | Valic Company vs. Valic Company I |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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