Correlation Between Ethereum and Janus Enterprise

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

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

Diversification Opportunities for Ethereum and Janus Enterprise

0.88

Correlation Coefficient

Ethereum  Janus Enterprise

Very poor diversification

The 3 months correlation between Ethereum and Janus is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Ethereum and Janus Enterprise Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Enterprise and Ethereum 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 Ethereum are associated (or correlated) with Janus Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Enterprise has no effect on the direction of Ethereum i.e., Ethereum and Janus Enterprise go up and down completely randomly.

Pair Corralation between Ethereum and Janus Enterprise

Assuming the 90 days trading horizon Ethereum is expected to generate 4.84 times more return on investment than Janus Enterprise. However, Ethereum is 4.84 times more volatile than Janus Enterprise Fund. It trades about 0.16 of its potential returns per unit of risk. Janus Enterprise Fund is currently generating about 0.07 per unit of risk. If you would invest  226,797  in Ethereum on January 26, 2024 and sell it today you would earn a total of  93,856  from holding Ethereum or generate 41.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	96.88%
Values	Daily Returns

Ethereum  vs.  Janus Enterprise Fund

Ethereum

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ethereum are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical indicators, Ethereum exhibited solid returns over the last few months and may actually be approaching a breakup point.

Janus Enterprise

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Janus Enterprise Fund are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Janus Enterprise is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Ethereum and Janus Enterprise

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

The idea behind Ethereum and Janus Enterprise Fund 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..