Correlation Between Janus Global and Columbia Global

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

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

Diversification Opportunities for Janus Global and Columbia Global

1.0

Correlation Coefficient

Janus Global  Columbia Global

No risk reduction

The 3 months correlation between Janus and Columbia is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Janus Global Technology and Columbia Global Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Global Tech and Janus Global 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 Global Technology are associated (or correlated) with Columbia Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Global Tech has no effect on the direction of Janus Global i.e., Janus Global and Columbia Global go up and down completely randomly.

Pair Corralation between Janus Global and Columbia Global

Assuming the 90 days horizon Janus Global is expected to generate 1.02 times less return on investment than Columbia Global. But when comparing it to its historical volatility, Janus Global Technology is 1.13 times less risky than Columbia Global. It trades about 0.32 of its potential returns per unit of risk. Columbia Global Technology is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest  8,469  in Columbia Global Technology on May 7, 2025 and sell it today you would earn a total of  1,720  from holding Columbia Global Technology or generate 20.31% return on investment over 90 days.

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

Janus Global Technology  vs.  Columbia Global Technology

Janus Global Technology

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Janus Global Technology are ranked lower than 25 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Janus Global showed solid returns over the last few months and may actually be approaching a breakup point.

Columbia Global Tech

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Columbia Global Technology are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Columbia Global showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Janus Global and Columbia Global

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

The idea behind Janus Global Technology and Columbia Global Technology 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.