Correlation Between Virtus Global and Janus Global

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Can any of the company-specific risk be diversified away by investing in both Virtus Global and Janus Global 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 Virtus Global and Janus Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus Global Real and Janus Global Real, you can compare the effects of market volatilities on Virtus Global and Janus Global 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 Virtus Global with a short position of Janus Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Global and Janus Global.

Diversification Opportunities for Virtus Global and Janus Global

0.71
  Correlation Coefficient

Poor diversification

The 3 months correlation between Virtus and Janus is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Global Real and Janus Global Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Global Real and Virtus 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 Virtus Global Real are associated (or correlated) with Janus Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Global Real has no effect on the direction of Virtus Global i.e., Virtus Global and Janus Global go up and down completely randomly.

Pair Corralation between Virtus Global and Janus Global

Assuming the 90 days horizon Virtus Global Real is expected to generate 1.05 times more return on investment than Janus Global. However, Virtus Global is 1.05 times more volatile than Janus Global Real. It trades about 0.05 of its potential returns per unit of risk. Janus Global Real is currently generating about 0.05 per unit of risk. If you would invest  3,514  in Virtus Global Real on September 2, 2025 and sell it today you would earn a total of  74.00  from holding Virtus Global Real or generate 2.11% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy98.46%
ValuesDaily Returns

Virtus Global Real  vs.  Janus Global Real

 Performance 
       Timeline  
Virtus Global Real 

Risk-Adjusted Performance

Mild

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Virtus Global Real are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Virtus Global is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.
Janus Global Real 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Janus Global Real are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Janus Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Virtus Global and Janus Global Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Virtus Global and Janus Global

The main advantage of trading using opposite Virtus Global and Janus Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Global position performs unexpectedly, Janus Global 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 Global will offset losses from the drop in Janus Global's long position.
The idea behind Virtus Global Real and Janus Global Real 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.

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