Correlation Between Cohen and Janus Henderson

Can any of the company-specific risk be diversified away by investing in both Cohen and Janus Henderson 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 Cohen and Janus Henderson into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cohen And Steers and Janus Henderson Group, you can compare the effects of market volatilities on Cohen and Janus Henderson 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 Cohen with a short position of Janus Henderson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen and Janus Henderson.

Diversification Opportunities for Cohen and Janus Henderson

0.73

Correlation Coefficient

Cohen  Janus Henderson

Poor diversification

The 3 months correlation between Cohen and Janus is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Cohen And Steers and Janus Henderson Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Henderson Group and Cohen 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 Cohen And Steers are associated (or correlated) with Janus Henderson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Henderson Group has no effect on the direction of Cohen i.e., Cohen and Janus Henderson go up and down completely randomly.

Pair Corralation between Cohen and Janus Henderson

Considering the 90-day investment horizon Cohen And Steers is expected to generate 0.92 times more return on investment than Janus Henderson. However, Cohen And Steers is 1.09 times less risky than Janus Henderson. It trades about 0.11 of its potential returns per unit of risk. Janus Henderson Group is currently generating about 0.0 per unit of risk. If you would invest  2,195  in Cohen And Steers on January 31, 2024 and sell it today you would earn a total of  114.00  from holding Cohen And Steers or generate 5.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Cohen And Steers  vs.  Janus Henderson Group

Cohen And Steers

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cohen And Steers are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. Despite nearly weak basic indicators, Cohen may actually be approaching a critical reversion point that can send shares even higher in May 2024.

Janus Henderson Group

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Janus Henderson Group are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical indicators, Janus Henderson may actually be approaching a critical reversion point that can send shares even higher in May 2024.

Pair Trading with Cohen and Janus Henderson

The main advantage of trading using opposite Cohen and Janus Henderson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen position performs unexpectedly, Janus Henderson 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 Henderson will offset losses from the drop in Janus Henderson's long position.

The idea behind Cohen And Steers and Janus Henderson Group 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.