Correlation Between KKR Co and Janus Henderson

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

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

Diversification Opportunities for KKR Co and Janus Henderson

0.97

Correlation Coefficient

KKR Co  Janus Henderson

Almost no diversification

The 3 months correlation between KKR and Janus is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding KKR Co LP and Janus Henderson Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Henderson Group and KKR Co 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 KKR Co LP 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 Group has no effect on the direction of KKR Co i.e., KKR Co and Janus Henderson go up and down completely randomly.

Pair Corralation between KKR Co and Janus Henderson

Considering the 90-day investment horizon KKR Co LP is expected to generate 1.3 times more return on investment than Janus Henderson. However, KKR Co is 1.3 times more volatile than Janus Henderson Group. It trades about 0.19 of its potential returns per unit of risk. Janus Henderson Group is currently generating about 0.21 per unit of risk. If you would invest  11,461  in KKR Co LP on May 4, 2025 and sell it today you would earn a total of  2,794  from holding KKR Co LP or generate 24.38% return on investment over 90 days.

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

KKR Co LP  vs.  Janus Henderson Group

KKR Co LP

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in KKR Co LP are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile forward-looking signals, KKR Co reported solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with KKR Co and Janus Henderson

The main advantage of trading using opposite KKR Co and Janus Henderson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KKR Co 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 KKR Co LP and Janus Henderson Group 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.