Correlation Between Multi-manager High and Janus High-yield
Can any of the company-specific risk be diversified away by investing in both Multi-manager High and Janus High-yield 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 Multi-manager High and Janus High-yield into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multi Manager High Yield and Janus High Yield Fund, you can compare the effects of market volatilities on Multi-manager High and Janus High-yield 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 Multi-manager High with a short position of Janus High-yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi-manager High and Janus High-yield.
Diversification Opportunities for Multi-manager High and Janus High-yield
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Multi-manager and Janus is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Multi Manager High Yield and Janus High Yield Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus High Yield and Multi-manager 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 Multi Manager High Yield are associated (or correlated) with Janus High-yield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus High Yield has no effect on the direction of Multi-manager High i.e., Multi-manager High and Janus High-yield go up and down completely randomly.
Pair Corralation between Multi-manager High and Janus High-yield
Assuming the 90 days horizon Multi Manager High Yield is expected to generate 1.19 times more return on investment than Janus High-yield. However, Multi-manager High is 1.19 times more volatile than Janus High Yield Fund. It trades about 0.28 of its potential returns per unit of risk. Janus High Yield Fund is currently generating about 0.19 per unit of risk. If you would invest 844.00 in Multi Manager High Yield on June 7, 2025 and sell it today you would earn a total of 8.00 from holding Multi Manager High Yield or generate 0.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multi Manager High Yield vs. Janus High Yield Fund
Performance |
| Timeline |
| Multi Manager High |
| Janus High Yield |
Multi-manager High and Janus High-yield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi-manager High and Janus High-yield
The main advantage of trading using opposite Multi-manager High and Janus High-yield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi-manager High position performs unexpectedly, Janus High-yield 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 Janus High-yield will offset losses from the drop in Janus High-yield's long position.| Multi-manager High vs. Buffalo Large Cap | Multi-manager High vs. Calvert Large Cap | Multi-manager High vs. Jhancock Disciplined Value | Multi-manager High vs. Fidelity Large Cap |
| Janus High-yield vs. Janus Research Fund | Janus High-yield vs. Janus Research Fund | Janus High-yield vs. Janus Research Fund | Janus High-yield vs. Janus Research 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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.
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