Correlation Between Capital Group and Virtus Newfleet
Can any of the company-specific risk be diversified away by investing in both Capital Group and Virtus Newfleet 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 Capital Group and Virtus Newfleet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capital Group Global and Virtus Newfleet Multi Sector, you can compare the effects of market volatilities on Capital Group and Virtus Newfleet 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 Capital Group with a short position of Virtus Newfleet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital Group and Virtus Newfleet.
Diversification Opportunities for Capital Group and Virtus Newfleet
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Capital and Virtus is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Capital Group Global and Virtus Newfleet Multi Sector in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus Newfleet Multi and Capital Group 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 Capital Group Global are associated (or correlated) with Virtus Newfleet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus Newfleet Multi has no effect on the direction of Capital Group i.e., Capital Group and Virtus Newfleet go up and down completely randomly.
Pair Corralation between Capital Group and Virtus Newfleet
Given the investment horizon of 90 days Capital Group is expected to generate 1.41 times less return on investment than Virtus Newfleet. In addition to that, Capital Group is 4.08 times more volatile than Virtus Newfleet Multi Sector. It trades about 0.03 of its total potential returns per unit of risk. Virtus Newfleet Multi Sector is currently generating about 0.16 per unit of volatility. If you would invest 2,162 in Virtus Newfleet Multi Sector on August 29, 2024 and sell it today you would earn a total of 111.00 from holding Virtus Newfleet Multi Sector or generate 5.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capital Group Global vs. Virtus Newfleet Multi Sector
Performance |
| Timeline |
| Capital Group Global |
| Virtus Newfleet Multi |
Capital Group and Virtus Newfleet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital Group and Virtus Newfleet
The main advantage of trading using opposite Capital Group and Virtus Newfleet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital Group position performs unexpectedly, Virtus Newfleet 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 Newfleet will offset losses from the drop in Virtus Newfleet's long position.| Capital Group vs. Capital Group Growth | Capital Group vs. Capital Group Dividend | Capital Group vs. Capital Group International | Capital Group vs. Capital Group Core |
| Virtus Newfleet vs. NuShares Enhanced Yield | Virtus Newfleet vs. Invesco Fundamental Investment | Virtus Newfleet vs. Invesco Global Short |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |