Correlation Between Virtu Financial and GOLD ROAD
Can any of the company-specific risk be diversified away by investing in both Virtu Financial and GOLD ROAD 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 GOLD ROAD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtu Financial and GOLD ROAD RES, you can compare the effects of market volatilities on Virtu Financial and GOLD ROAD 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 GOLD ROAD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtu Financial and GOLD ROAD.
Diversification Opportunities for Virtu Financial and GOLD ROAD
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Virtu and GOLD is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Virtu Financial and GOLD ROAD RES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GOLD ROAD RES 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 GOLD ROAD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GOLD ROAD RES has no effect on the direction of Virtu Financial i.e., Virtu Financial and GOLD ROAD go up and down completely randomly.
Pair Corralation between Virtu Financial and GOLD ROAD
Assuming the 90 days horizon Virtu Financial is expected to generate 0.88 times more return on investment than GOLD ROAD. However, Virtu Financial is 1.14 times less risky than GOLD ROAD. It trades about 0.16 of its potential returns per unit of risk. GOLD ROAD RES is currently generating about 0.09 per unit of risk. If you would invest 1,695 in Virtu Financial on November 1, 2024 and sell it today you would earn a total of 2,005 from holding Virtu Financial or generate 118.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtu Financial vs. GOLD ROAD RES
Performance |
| Timeline |
| Virtu Financial |
| GOLD ROAD RES |
Virtu Financial and GOLD ROAD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtu Financial and GOLD ROAD
The main advantage of trading using opposite Virtu Financial and GOLD ROAD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtu Financial position performs unexpectedly, GOLD ROAD 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 GOLD ROAD will offset losses from the drop in GOLD ROAD's long position.| Virtu Financial vs. Methode Electronics | Virtu Financial vs. Renesas Electronics | Virtu Financial vs. AOI Electronics Co | Virtu Financial vs. BJs Wholesale Club |
| GOLD ROAD vs. National Health Investors | GOLD ROAD vs. RCI Hospitality Holdings | GOLD ROAD vs. Virtu Financial | GOLD ROAD vs. BANKINTER ADR 2007 |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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