Correlation Between Hoya Capital and Virtus InfraCap
Can any of the company-specific risk be diversified away by investing in both Hoya Capital and Virtus InfraCap 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 Hoya Capital and Virtus InfraCap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hoya Capital and Virtus InfraCap Preferred, you can compare the effects of market volatilities on Hoya Capital and Virtus InfraCap 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 Hoya Capital with a short position of Virtus InfraCap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoya Capital and Virtus InfraCap.
Diversification Opportunities for Hoya Capital and Virtus InfraCap
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hoya and Virtus is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding The Hoya Capital and Virtus InfraCap Preferred in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus InfraCap Preferred and Hoya Capital 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 The Hoya Capital are associated (or correlated) with Virtus InfraCap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus InfraCap Preferred has no effect on the direction of Hoya Capital i.e., Hoya Capital and Virtus InfraCap go up and down completely randomly.
Pair Corralation between Hoya Capital and Virtus InfraCap
Given the investment horizon of 90 days The Hoya Capital is expected to generate 2.49 times more return on investment than Virtus InfraCap. However, Hoya Capital is 2.49 times more volatile than Virtus InfraCap Preferred. It trades about 0.28 of its potential returns per unit of risk. Virtus InfraCap Preferred is currently generating about 0.13 per unit of risk. If you would invest 4,797 in The Hoya Capital on August 30, 2024 and sell it today you would earn a total of 333.00 from holding The Hoya Capital or generate 6.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hoya Capital vs. Virtus InfraCap Preferred
Performance |
| Timeline |
| Hoya Capital |
| Virtus InfraCap Preferred |
Hoya Capital and Virtus InfraCap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoya Capital and Virtus InfraCap
The main advantage of trading using opposite Hoya Capital and Virtus InfraCap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoya Capital position performs unexpectedly, Virtus InfraCap 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 InfraCap will offset losses from the drop in Virtus InfraCap's long position.| Hoya Capital vs. Hoya Capital High | Hoya Capital vs. Pacer Benchmark Industrial | Hoya Capital vs. Pacer Benchmark Data | Hoya Capital vs. Invesco Dynamic Building |
| Virtus InfraCap vs. ETFis Series Trust | Virtus InfraCap vs. XAI Octagon Floating | Virtus InfraCap vs. InfraCap MLP ETF | Virtus InfraCap vs. VanEck BDC Income |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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