Correlation Between Global X and Janus Henderson

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

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

Diversification Opportunities for Global X and Janus Henderson

0.93

Correlation Coefficient

Global X  Janus Henderson

Almost no diversification

The 3 months correlation between Global and Janus is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Global X Funds 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 Global X 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 Global X Funds 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 Global X i.e., Global X and Janus Henderson go up and down completely randomly.

Pair Corralation between Global X and Janus Henderson

Considering the 90-day investment horizon Global X Funds is expected to generate 0.71 times more return on investment than Janus Henderson. However, Global X Funds is 1.41 times less risky than Janus Henderson. It trades about 0.23 of its potential returns per unit of risk. Janus Henderson Small is currently generating about 0.15 per unit of risk. If you would invest  2,666  in Global X Funds on May 6, 2025 and sell it today you would earn a total of  311.80  from holding Global X Funds or generate 11.7% return on investment over 90 days.

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

Global X Funds  vs.  Janus Henderson Small

Global X Funds

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Global X Funds are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain primary indicators, Global X may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Janus Henderson Small

Risk-Adjusted Performance

Good

Over the last 90 days Janus Henderson Small has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite weak primary indicators, Janus Henderson may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Global X and Janus Henderson

The main advantage of trading using opposite Global X and Janus Henderson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X 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 Global X Funds 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.