Correlation Between Tidal Trust and Janus Henderson

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

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

Diversification Opportunities for Tidal Trust and Janus Henderson

0.95

Correlation Coefficient

Tidal Trust  Janus Henderson

Almost no diversification

The 3 months correlation between Tidal and Janus is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Tidal Trust II and Janus Henderson Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Henderson Small and Tidal Trust 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 Tidal Trust II 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 Small has no effect on the direction of Tidal Trust i.e., Tidal Trust and Janus Henderson go up and down completely randomly.

Pair Corralation between Tidal Trust and Janus Henderson

Given the investment horizon of 90 days Tidal Trust II is expected to generate 1.04 times more return on investment than Janus Henderson. However, Tidal Trust is 1.04 times more volatile than Janus Henderson Small. It trades about 0.41 of its potential returns per unit of risk. Janus Henderson Small is currently generating about 0.22 per unit of risk. If you would invest  2,822  in Tidal Trust II on April 30, 2025 and sell it today you would earn a total of  964.00  from holding Tidal Trust II or generate 34.16% return on investment over 90 days.

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

Tidal Trust II  vs.  Janus Henderson Small

Tidal Trust II

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Tidal Trust II are ranked lower than 32 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Tidal Trust reported solid returns over the last few months and may actually be approaching a breakup point.

Janus Henderson Small

Risk-Adjusted Performance

Good

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

Pair Trading with Tidal Trust and Janus Henderson

The main advantage of trading using opposite Tidal Trust and Janus Henderson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tidal Trust 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 Tidal Trust II and Janus Henderson Small 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.