Correlation Between Janus Triton and Baird Smallcap

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

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

Diversification Opportunities for Janus Triton and Baird Smallcap

0.98

Correlation Coefficient

Janus Triton  Baird Smallcap

Almost no diversification

The 3 months correlation between Janus and Baird is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Janus Triton Fund and Baird Smallcap Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baird Smallcap Value and Janus Triton 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 Janus Triton Fund are associated (or correlated) with Baird Smallcap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baird Smallcap Value has no effect on the direction of Janus Triton i.e., Janus Triton and Baird Smallcap go up and down completely randomly.

Pair Corralation between Janus Triton and Baird Smallcap

Assuming the 90 days horizon Janus Triton is expected to generate 1.54 times less return on investment than Baird Smallcap. But when comparing it to its historical volatility, Janus Triton Fund is 1.41 times less risky than Baird Smallcap. It trades about 0.12 of its potential returns per unit of risk. Baird Smallcap Value is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  1,421  in Baird Smallcap Value on May 5, 2025 and sell it today you would earn a total of  150.00  from holding Baird Smallcap Value or generate 10.56% return on investment over 90 days.

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

Janus Triton Fund  vs.  Baird Smallcap Value

Janus Triton

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Janus Triton Fund are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Janus Triton may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Baird Smallcap Value

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Baird Smallcap Value are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Baird Smallcap may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Janus Triton and Baird Smallcap

The main advantage of trading using opposite Janus Triton and Baird Smallcap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus Triton position performs unexpectedly, Baird Smallcap 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 Baird Smallcap will offset losses from the drop in Baird Smallcap's long position.

The idea behind Janus Triton Fund and Baird Smallcap Value 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.