Correlation Between Barings Us and Virtus High
Can any of the company-specific risk be diversified away by investing in both Barings Us and Virtus High 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 Barings Us and Virtus High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings High Yield and Virtus High Yield, you can compare the effects of market volatilities on Barings Us and Virtus High 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 Barings Us with a short position of Virtus High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Us and Virtus High.
Diversification Opportunities for Barings Us and Virtus High
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Barings and Virtus is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Barings High Yield and Virtus High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus High Yield and Barings Us 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 Barings High Yield are associated (or correlated) with Virtus High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus High Yield has no effect on the direction of Barings Us i.e., Barings Us and Virtus High go up and down completely randomly.
Pair Corralation between Barings Us and Virtus High
Assuming the 90 days horizon Barings High Yield is expected to under-perform the Virtus High. But the mutual fund apears to be less risky and, when comparing its historical volatility, Barings High Yield is 1.19 times less risky than Virtus High. The mutual fund trades about -0.37 of its potential returns per unit of risk. The Virtus High Yield is currently generating about -0.26 of returns per unit of risk over similar time horizon. If you would invest 390.00 in Virtus High Yield on October 12, 2024 and sell it today you would lose (4.00) from holding Virtus High Yield or give up 1.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings High Yield vs. Virtus High Yield
Performance |
| Timeline |
| Barings High Yield |
| Virtus High Yield |
Barings Us and Virtus High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Us and Virtus High
The main advantage of trading using opposite Barings Us and Virtus High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Us position performs unexpectedly, Virtus High 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 High will offset losses from the drop in Virtus High's long position.| Barings Us vs. Amg Managers Centersquare | Barings Us vs. Jhancock Real Estate | Barings Us vs. Nexpoint Real Estate | Barings Us vs. Redwood Real Estate |
| Virtus High vs. T Rowe Price | Virtus High vs. Barings High Yield | Virtus High vs. Alliancebernstein Bond | Virtus High vs. Ambrus Core Bond |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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