Correlation Between Crossmark Steward and Janus Asia

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Can any of the company-specific risk be diversified away by investing in both Crossmark Steward and Janus Asia 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 Crossmark Steward and Janus Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crossmark Steward Equity and Janus Asia Equity, you can compare the effects of market volatilities on Crossmark Steward and Janus Asia 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 Crossmark Steward with a short position of Janus Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crossmark Steward and Janus Asia.

Diversification Opportunities for Crossmark Steward and Janus Asia

-0.06
  Correlation Coefficient

Good diversification

The 3 months correlation between Crossmark and Janus is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Crossmark Steward Equity and JANUS ASIA EQUITY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Asia Equity and Crossmark Steward 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 Crossmark Steward Equity are associated (or correlated) with Janus Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Asia Equity has no effect on the direction of Crossmark Steward i.e., Crossmark Steward and Janus Asia go up and down completely randomly.

Pair Corralation between Crossmark Steward and Janus Asia

Assuming the 90 days horizon Crossmark Steward Equity is expected to under-perform the Janus Asia. But the mutual fund apears to be less risky and, when comparing its historical volatility, Crossmark Steward Equity is 1.05 times less risky than Janus Asia. The mutual fund trades about -0.05 of its potential returns per unit of risk. The Janus Asia Equity is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest  922.00  in Janus Asia Equity on December 3, 2023 and sell it today you would earn a total of  49.00  from holding Janus Asia Equity or generate 5.31% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy95.45%
ValuesDaily Returns

Crossmark Steward Equity  vs.  JANUS ASIA EQUITY

 Performance 
       Timeline  
Crossmark Steward Equity 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Crossmark Steward Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Crossmark Steward is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Janus Asia Equity 

Risk-Adjusted Performance

3 of 100

 
Low
 
High
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Janus Asia Equity are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Janus Asia is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Crossmark Steward and Janus Asia Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Crossmark Steward and Janus Asia

The main advantage of trading using opposite Crossmark Steward and Janus Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crossmark Steward position performs unexpectedly, Janus Asia 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 Asia will offset losses from the drop in Janus Asia's long position.
The idea behind Crossmark Steward Equity and Janus Asia Equity 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.

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