Correlation Between BlackRock Capital and Janus Global

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

By analyzing existing cross correlation between BlackRock Capital Allocation and Janus Global Allocation, you can compare the effects of market volatilities on BlackRock Capital 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 BlackRock Capital with a short position of Janus Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlackRock Capital and Janus Global.

Diversification Opportunities for BlackRock Capital and Janus Global

0.72

Correlation Coefficient

BlackRock Capital  Janus Global

Poor diversification

The 3 months correlation between BlackRock and Janus is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock Capital Allocation and Janus Global Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Global Allocation and BlackRock Capital 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 BlackRock Capital Allocation 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 Allocation has no effect on the direction of BlackRock Capital i.e., BlackRock Capital and Janus Global go up and down completely randomly.

Pair Corralation between BlackRock Capital and Janus Global

Given the investment horizon of 90 days BlackRock Capital is expected to generate 1.11 times less return on investment than Janus Global. In addition to that, BlackRock Capital is 1.2 times more volatile than Janus Global Allocation. It trades about 0.17 of its total potential returns per unit of risk. Janus Global Allocation is currently generating about 0.22 per unit of volatility. If you would invest  1,267  in Janus Global Allocation on May 6, 2025 and sell it today you would earn a total of  94.00  from holding Janus Global Allocation or generate 7.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.41%
Values	Daily Returns

BlackRock Capital Allocation  vs.  Janus Global Allocation

BlackRock Capital

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in BlackRock Capital Allocation are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, BlackRock Capital may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Janus Global Allocation

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Janus Global Allocation are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Janus Global may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with BlackRock Capital and Janus Global

The main advantage of trading using opposite BlackRock Capital and Janus Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlackRock Capital 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 BlackRock Capital Allocation and Janus Global Allocation 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.