Correlation Between Intelligent Protection and Janus Henderson

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

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

Diversification Opportunities for Intelligent Protection and Janus Henderson

0.74

Correlation Coefficient

Intelligent Protection  Janus Henderson

Poor diversification

The 3 months correlation between Intelligent and Janus is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Intelligent Protection Managem and Janus Henderson Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Henderson Global and Intelligent Protection 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 Intelligent Protection Management 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 Global has no effect on the direction of Intelligent Protection i.e., Intelligent Protection and Janus Henderson go up and down completely randomly.

Pair Corralation between Intelligent Protection and Janus Henderson

Considering the 90-day investment horizon Intelligent Protection Management is expected to under-perform the Janus Henderson. In addition to that, Intelligent Protection is 1.49 times more volatile than Janus Henderson Global. It trades about 0.0 of its total potential returns per unit of risk. Janus Henderson Global is currently generating about 0.01 per unit of volatility. If you would invest  6,544  in Janus Henderson Global on February 15, 2025 and sell it today you would earn a total of  1.00  from holding Janus Henderson Global or generate 0.02% return on investment over 90 days.

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

Intelligent Protection Managem  vs.  Janus Henderson Global

Intelligent Protection

Risk-Adjusted Performance

Very Weak

Over the last 90 days Intelligent Protection Management has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Intelligent Protection is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Janus Henderson Global

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Janus Henderson Global are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Janus Henderson is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Intelligent Protection and Janus Henderson

The main advantage of trading using opposite Intelligent Protection and Janus Henderson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intelligent Protection 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 Intelligent Protection Management and Janus Henderson Global 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.

Check out your portfolio center.

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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.