Correlation Between Virtus ETF and VictoryShares
Can any of the company-specific risk be diversified away by investing in both Virtus ETF and VictoryShares 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 Virtus ETF and VictoryShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus ETF Trust and VictoryShares EQ Income, you can compare the effects of market volatilities on Virtus ETF and VictoryShares 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 Virtus ETF with a short position of VictoryShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus ETF and VictoryShares.
Diversification Opportunities for Virtus ETF and VictoryShares
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Virtus and VictoryShares is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Virtus ETF Trust and VictoryShares EQ Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VictoryShares EQ Income and Virtus ETF 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 Virtus ETF Trust are associated (or correlated) with VictoryShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VictoryShares EQ Income has no effect on the direction of Virtus ETF i.e., Virtus ETF and VictoryShares go up and down completely randomly.
Pair Corralation between Virtus ETF and VictoryShares
Given the investment horizon of 90 days Virtus ETF Trust is expected to generate 1.52 times more return on investment than VictoryShares. However, Virtus ETF is 1.52 times more volatile than VictoryShares EQ Income. It trades about 0.13 of its potential returns per unit of risk. VictoryShares EQ Income is currently generating about 0.09 per unit of risk. If you would invest 2,648 in Virtus ETF Trust on August 26, 2024 and sell it today you would earn a total of 1,392 from holding Virtus ETF Trust or generate 52.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtus ETF Trust vs. VictoryShares EQ Income
Performance |
| Timeline |
| Virtus ETF Trust |
| VictoryShares EQ Income |
Virtus ETF and VictoryShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus ETF and VictoryShares
The main advantage of trading using opposite Virtus ETF and VictoryShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus ETF position performs unexpectedly, VictoryShares 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 VictoryShares will offset losses from the drop in VictoryShares' long position.| Virtus ETF vs. iShares Small Cap | Virtus ETF vs. Pacer Cash Cows | Virtus ETF vs. GXO Logistics | Virtus ETF vs. ProShares Pet Care |
| VictoryShares vs. BlackRock ETF Trust | VictoryShares vs. Rbb Fund | VictoryShares vs. Virtus ETF Trust | VictoryShares vs. Amplify CWP Enhanced |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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