Correlation Between Spectrum International and Janus Global

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

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

Diversification Opportunities for Spectrum International and Janus Global

0.36

Correlation Coefficient

Spectrum International  Janus Global

Weak diversification

The 3 months correlation between Spectrum and Janus is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Spectrum International Fund and Janus Global Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Global Allocation and Spectrum International 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 Spectrum International Fund are associated (or correlated) with Janus Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Global Allocation has no effect on the direction of Spectrum International i.e., Spectrum International and Janus Global go up and down completely randomly.

Pair Corralation between Spectrum International and Janus Global

Assuming the 90 days horizon Spectrum International is expected to generate 1.02 times less return on investment than Janus Global. In addition to that, Spectrum International is 1.19 times more volatile than Janus Global Allocation. It trades about 0.29 of its total potential returns per unit of risk. Janus Global Allocation is currently generating about 0.35 per unit of volatility. If you would invest  1,287  in Janus Global Allocation on April 25, 2025 and sell it today you would earn a total of  155.00  from holding Janus Global Allocation or generate 12.04% return on investment over 90 days.

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

Spectrum International Fund  vs.  Janus Global Allocation

Spectrum International

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Spectrum International Fund are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak essential indicators, Spectrum International may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Janus Global Allocation

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Janus Global Allocation are ranked lower than 27 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Janus Global may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Spectrum International and Janus Global

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

The idea behind Spectrum International Fund and Janus Global Allocation 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.