Correlation Between Janus Henderson and Prudential PLC

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

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

Diversification Opportunities for Janus Henderson and Prudential PLC

0.8

Correlation Coefficient

Janus Henderson  Prudential PLC

Very poor diversification

The 3 months correlation between Janus and Prudential is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Janus Henderson Group and Prudential PLC ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prudential PLC ADR and Janus Henderson 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 Henderson Group are associated (or correlated) with Prudential PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prudential PLC ADR has no effect on the direction of Janus Henderson i.e., Janus Henderson and Prudential PLC go up and down completely randomly.

Pair Corralation between Janus Henderson and Prudential PLC

Considering the 90-day investment horizon Janus Henderson Group is expected to generate 1.18 times more return on investment than Prudential PLC. However, Janus Henderson is 1.18 times more volatile than Prudential PLC ADR. It trades about 0.21 of its potential returns per unit of risk. Prudential PLC ADR is currently generating about 0.18 per unit of risk. If you would invest  3,482  in Janus Henderson Group on May 5, 2025 and sell it today you would earn a total of  748.00  from holding Janus Henderson Group or generate 21.48% return on investment over 90 days.

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

Janus Henderson Group  vs.  Prudential PLC ADR

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 16 (%) 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.

Prudential PLC ADR

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Prudential PLC ADR are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile basic indicators, Prudential PLC disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Janus Henderson and Prudential PLC

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

The idea behind Janus Henderson Group and Prudential PLC ADR 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 Global Correlations module to find global opportunities by holding instruments from different markets.