Correlation Between FIRST SAVINGS and Virtus Investment
Can any of the company-specific risk be diversified away by investing in both FIRST SAVINGS and Virtus Investment 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 FIRST SAVINGS and Virtus Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FIRST SAVINGS FINL and Virtus Investment Partners, you can compare the effects of market volatilities on FIRST SAVINGS and Virtus Investment 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 FIRST SAVINGS with a short position of Virtus Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIRST SAVINGS and Virtus Investment.
Diversification Opportunities for FIRST SAVINGS and Virtus Investment
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between FIRST and Virtus is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding FIRST SAVINGS FINL and Virtus Investment Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus Investment and FIRST SAVINGS 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 FIRST SAVINGS FINL are associated (or correlated) with Virtus Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus Investment has no effect on the direction of FIRST SAVINGS i.e., FIRST SAVINGS and Virtus Investment go up and down completely randomly.
Pair Corralation between FIRST SAVINGS and Virtus Investment
Assuming the 90 days horizon FIRST SAVINGS FINL is expected to generate 1.8 times more return on investment than Virtus Investment. However, FIRST SAVINGS is 1.8 times more volatile than Virtus Investment Partners. It trades about -0.18 of its potential returns per unit of risk. Virtus Investment Partners is currently generating about -0.41 per unit of risk. If you would invest 2,604 in FIRST SAVINGS FINL on October 12, 2024 and sell it today you would lose (244.00) from holding FIRST SAVINGS FINL or give up 9.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIRST SAVINGS FINL vs. Virtus Investment Partners
Performance |
| Timeline |
| FIRST SAVINGS FINL |
| Virtus Investment |
FIRST SAVINGS and Virtus Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIRST SAVINGS and Virtus Investment
The main advantage of trading using opposite FIRST SAVINGS and Virtus Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIRST SAVINGS position performs unexpectedly, Virtus Investment 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 Virtus Investment will offset losses from the drop in Virtus Investment's long position.| FIRST SAVINGS vs. CITY OFFICE REIT | FIRST SAVINGS vs. Aedas Homes SA | FIRST SAVINGS vs. Diamyd Medical AB | FIRST SAVINGS vs. Neinor Homes SA |
| Virtus Investment vs. COFCO Joycome Foods | Virtus Investment vs. Corsair Gaming | Virtus Investment vs. GWILLI FOOD | Virtus Investment vs. Austevoll Seafood ASA |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |