Correlation Between Blackstone and Janus Henderson

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

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

Diversification Opportunities for Blackstone and Janus Henderson

0.98

Correlation Coefficient

Blackstone  Janus Henderson

Almost no diversification

The 3 months correlation between Blackstone and Janus is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group 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 Blackstone 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 Blackstone Group 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 Blackstone i.e., Blackstone and Janus Henderson go up and down completely randomly.

Pair Corralation between Blackstone and Janus Henderson

Allowing for the 90-day total investment horizon Blackstone Group is expected to generate 1.26 times more return on investment than Janus Henderson. However, Blackstone is 1.26 times more volatile than Janus Henderson Group. It trades about 0.2 of its potential returns per unit of risk. Janus Henderson Group is currently generating about 0.22 per unit of risk. If you would invest  13,532  in Blackstone Group on May 7, 2025 and sell it today you would earn a total of  3,518  from holding Blackstone Group or generate 26.0% return on investment over 90 days.

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

Blackstone Group  vs.  Janus Henderson Group

Blackstone Group

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Blackstone Group are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Blackstone showed solid returns over the last few months and may actually be approaching a breakup point.

Janus Henderson Group

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Janus Henderson Group are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical indicators, Janus Henderson reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Blackstone and Janus Henderson

The main advantage of trading using opposite Blackstone and Janus Henderson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone 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 Blackstone Group 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.