Correlation Between Select Fund and Janus Global

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

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

Diversification Opportunities for Select Fund and Janus Global

0.53

Correlation Coefficient

Select Fund  Janus Global

Very weak diversification

The 3 months correlation between Select and Janus is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Select Fund Investor and Janus Global Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Global Research and Select Fund 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 Select Fund Investor 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 Research has no effect on the direction of Select Fund i.e., Select Fund and Janus Global go up and down completely randomly.

Pair Corralation between Select Fund and Janus Global

Assuming the 90 days horizon Select Fund Investor is expected to generate 1.39 times more return on investment than Janus Global. However, Select Fund is 1.39 times more volatile than Janus Global Research. It trades about 0.27 of its potential returns per unit of risk. Janus Global Research is currently generating about 0.32 per unit of risk. If you would invest  11,086  in Select Fund Investor on May 1, 2025 and sell it today you would earn a total of  1,866  from holding Select Fund Investor or generate 16.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

Select Fund Investor  vs.  Janus Global Research

Select Fund Investor

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Select Fund Investor are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Select Fund showed solid returns over the last few months and may actually be approaching a breakup point.

Janus Global Research

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Janus Global Research are ranked lower than 24 (%) 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.

Pair Trading with Select Fund and Janus Global

The main advantage of trading using opposite Select Fund and Janus Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Select Fund 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 Select Fund Investor and Janus Global Research 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.