Correlation Between Virtus ETF and Series Portfolios
Can any of the company-specific risk be diversified away by investing in both Virtus ETF and Series Portfolios 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 Series Portfolios 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 Series Portfolios Trust, you can compare the effects of market volatilities on Virtus ETF and Series Portfolios 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 Series Portfolios. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus ETF and Series Portfolios.
Diversification Opportunities for Virtus ETF and Series Portfolios
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Virtus and Series is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Virtus ETF Trust and Series Portfolios Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Series Portfolios Trust 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 Series Portfolios. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Series Portfolios Trust has no effect on the direction of Virtus ETF i.e., Virtus ETF and Series Portfolios go up and down completely randomly.
Pair Corralation between Virtus ETF and Series Portfolios
Given the investment horizon of 90 days Virtus ETF Trust is expected to generate 0.87 times more return on investment than Series Portfolios. However, Virtus ETF Trust is 1.14 times less risky than Series Portfolios. It trades about -0.01 of its potential returns per unit of risk. Series Portfolios Trust is currently generating about -0.08 per unit of risk. If you would invest 3,990 in Virtus ETF Trust on September 12, 2024 and sell it today you would lose (8.00) from holding Virtus ETF Trust or give up 0.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Virtus ETF Trust vs. Series Portfolios Trust
Performance |
| Timeline |
| Virtus ETF Trust |
| Series Portfolios Trust |
Virtus ETF and Series Portfolios Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus ETF and Series Portfolios
The main advantage of trading using opposite Virtus ETF and Series Portfolios positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus ETF position performs unexpectedly, Series Portfolios 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 Series Portfolios will offset losses from the drop in Series Portfolios' 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 |
| Series Portfolios vs. Freedom Day Dividend | Series Portfolios vs. Franklin Templeton ETF | Series Portfolios vs. iShares MSCI China | Series Portfolios vs. Tidal Trust II |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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