Correlation Between Virtu Financial and INTER CARS
Can any of the company-specific risk be diversified away by investing in both Virtu Financial and INTER CARS 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 Virtu Financial and INTER CARS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtu Financial and INTER CARS SA, you can compare the effects of market volatilities on Virtu Financial and INTER CARS 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 Virtu Financial with a short position of INTER CARS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtu Financial and INTER CARS.
Diversification Opportunities for Virtu Financial and INTER CARS
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Virtu and INTER is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Virtu Financial and INTER CARS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTER CARS SA and Virtu Financial 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 Virtu Financial are associated (or correlated) with INTER CARS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTER CARS SA has no effect on the direction of Virtu Financial i.e., Virtu Financial and INTER CARS go up and down completely randomly.
Pair Corralation between Virtu Financial and INTER CARS
Assuming the 90 days horizon Virtu Financial is expected to under-perform the INTER CARS. In addition to that, Virtu Financial is 1.31 times more volatile than INTER CARS SA. It trades about -0.25 of its total potential returns per unit of risk. INTER CARS SA is currently generating about -0.01 per unit of volatility. If you would invest 13,260 in INTER CARS SA on December 11, 2024 and sell it today you would lose (60.00) from holding INTER CARS SA or give up 0.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtu Financial vs. INTER CARS SA
Performance |
| Timeline |
| Virtu Financial |
| INTER CARS SA |
Virtu Financial and INTER CARS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtu Financial and INTER CARS
The main advantage of trading using opposite Virtu Financial and INTER CARS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtu Financial position performs unexpectedly, INTER CARS 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 INTER CARS will offset losses from the drop in INTER CARS's long position.| Virtu Financial vs. Japan Medical Dynamic | Virtu Financial vs. BRAGG GAMING GRP | Virtu Financial vs. Scientific Games | Virtu Financial vs. Medical Properties Trust |
| INTER CARS vs. Diversified Healthcare Trust | INTER CARS vs. COREBRIDGE FINANCIAL INC | INTER CARS vs. ECHO INVESTMENT ZY | INTER CARS vs. SLR Investment Corp |
Check out your portfolio center.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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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