Correlation Between Washington Mutual and Virtus AllianzGI
Can any of the company-specific risk be diversified away by investing in both Washington Mutual and Virtus AllianzGI 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 Washington Mutual and Virtus AllianzGI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Washington Mutual Investors and Virtus AllianzGI Convertible, you can compare the effects of market volatilities on Washington Mutual and Virtus AllianzGI 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 Washington Mutual with a short position of Virtus AllianzGI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Washington Mutual and Virtus AllianzGI.
Diversification Opportunities for Washington Mutual and Virtus AllianzGI
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Washington and Virtus is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Washington Mutual Investors and Virtus AllianzGI Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus AllianzGI Con and Washington Mutual 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 Washington Mutual Investors are associated (or correlated) with Virtus AllianzGI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus AllianzGI Con has no effect on the direction of Washington Mutual i.e., Washington Mutual and Virtus AllianzGI go up and down completely randomly.
Pair Corralation between Washington Mutual and Virtus AllianzGI
Assuming the 90 days horizon Washington Mutual Investors is expected to generate 1.11 times more return on investment than Virtus AllianzGI. However, Washington Mutual is 1.11 times more volatile than Virtus AllianzGI Convertible. It trades about 0.05 of its potential returns per unit of risk. Virtus AllianzGI Convertible is currently generating about 0.03 per unit of risk. If you would invest 5,817 in Washington Mutual Investors on November 3, 2024 and sell it today you would earn a total of 584.00 from holding Washington Mutual Investors or generate 10.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Washington Mutual Investors vs. Virtus AllianzGI Convertible
Performance |
| Timeline |
| Washington Mutual |
| Virtus AllianzGI Con |
Washington Mutual and Virtus AllianzGI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Washington Mutual and Virtus AllianzGI
The main advantage of trading using opposite Washington Mutual and Virtus AllianzGI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Washington Mutual position performs unexpectedly, Virtus AllianzGI 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 AllianzGI will offset losses from the drop in Virtus AllianzGI's long position.| Washington Mutual vs. Neuberger Berman Real | Washington Mutual vs. Dunham Real Estate | Washington Mutual vs. Real Estate Ultrasector | Washington Mutual vs. Texton Property |
| Virtus AllianzGI vs. The Gabelli Equity | Virtus AllianzGI vs. The Gabelli Equity | Virtus AllianzGI vs. Oxford Lane Capital | Virtus AllianzGI vs. The Gabelli Utility |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |