Correlation Between AIM ETF and Janus Henderson

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

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

Diversification Opportunities for AIM ETF and Janus Henderson

0.91

Correlation Coefficient

AIM ETF  Janus Henderson

Almost no diversification

The 3 months correlation between AIM and Janus is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding AIM ETF Products and Janus Henderson Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Henderson Small and AIM ETF 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 AIM ETF Products 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 Small has no effect on the direction of AIM ETF i.e., AIM ETF and Janus Henderson go up and down completely randomly.

Pair Corralation between AIM ETF and Janus Henderson

Given the investment horizon of 90 days AIM ETF is expected to generate 1.3 times less return on investment than Janus Henderson. But when comparing it to its historical volatility, AIM ETF Products is 2.09 times less risky than Janus Henderson. It trades about 0.06 of its potential returns per unit of risk. Janus Henderson Small is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  5,580  in Janus Henderson Small on April 28, 2025 and sell it today you would earn a total of  1,242  from holding Janus Henderson Small or generate 22.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	58.18%
Values	Daily Returns

AIM ETF Products  vs.  Janus Henderson Small

AIM ETF Products

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in AIM ETF Products are ranked lower than 29 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, AIM ETF is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Janus Henderson Small

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Janus Henderson Small are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady primary indicators, Janus Henderson disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AIM ETF and Janus Henderson

The main advantage of trading using opposite AIM ETF and Janus Henderson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ETF 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 AIM ETF Products and Janus Henderson Small 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.