Correlation Between Virtus InfraCap and Hoya Capital
Can any of the company-specific risk be diversified away by investing in both Virtus InfraCap and Hoya Capital 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 InfraCap and Hoya Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus InfraCap Preferred and The Hoya Capital, you can compare the effects of market volatilities on Virtus InfraCap and Hoya Capital 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 InfraCap with a short position of Hoya Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus InfraCap and Hoya Capital.
Diversification Opportunities for Virtus InfraCap and Hoya Capital
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Virtus and Hoya is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Virtus InfraCap Preferred and The Hoya Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hoya Capital and Virtus InfraCap 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 InfraCap Preferred are associated (or correlated) with Hoya Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hoya Capital has no effect on the direction of Virtus InfraCap i.e., Virtus InfraCap and Hoya Capital go up and down completely randomly.
Pair Corralation between Virtus InfraCap and Hoya Capital
Given the investment horizon of 90 days Virtus InfraCap is expected to generate 5.4 times less return on investment than Hoya Capital. But when comparing it to its historical volatility, Virtus InfraCap Preferred is 2.49 times less risky than Hoya Capital. It trades about 0.13 of its potential returns per unit of risk. The Hoya Capital is currently generating about 0.28 of returns per unit of risk over similar time horizon. 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 |
Virtus InfraCap Preferred vs. The Hoya Capital
Performance |
| Timeline |
| Virtus InfraCap Preferred |
| Hoya Capital |
Virtus InfraCap and Hoya Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus InfraCap and Hoya Capital
The main advantage of trading using opposite Virtus InfraCap and Hoya Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus InfraCap position performs unexpectedly, Hoya Capital 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 Hoya Capital will offset losses from the drop in Hoya Capital's long position.| Virtus InfraCap vs. ETFis Series Trust | Virtus InfraCap vs. XAI Octagon Floating | Virtus InfraCap vs. InfraCap MLP ETF | Virtus InfraCap vs. VanEck BDC Income |
| Hoya Capital vs. Hoya Capital High | Hoya Capital vs. Pacer Benchmark Industrial | Hoya Capital vs. Pacer Benchmark Data | Hoya Capital vs. Invesco Dynamic Building |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |