Correlation Between Virtus InfraCap and Nuveen Preferred
Can any of the company-specific risk be diversified away by investing in both Virtus InfraCap and Nuveen Preferred 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 Nuveen Preferred 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 Nuveen Preferred and, you can compare the effects of market volatilities on Virtus InfraCap and Nuveen Preferred 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 Nuveen Preferred. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus InfraCap and Nuveen Preferred.
Diversification Opportunities for Virtus InfraCap and Nuveen Preferred
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Virtus and Nuveen is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Virtus InfraCap Preferred and Nuveen Preferred and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Preferred 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 Nuveen Preferred. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Preferred has no effect on the direction of Virtus InfraCap i.e., Virtus InfraCap and Nuveen Preferred go up and down completely randomly.
Pair Corralation between Virtus InfraCap and Nuveen Preferred
Given the investment horizon of 90 days Virtus InfraCap Preferred is expected to generate 4.8 times more return on investment than Nuveen Preferred. However, Virtus InfraCap is 4.8 times more volatile than Nuveen Preferred and. It trades about 0.11 of its potential returns per unit of risk. Nuveen Preferred and is currently generating about 0.21 per unit of risk. If you would invest 1,539 in Virtus InfraCap Preferred on September 2, 2024 and sell it today you would earn a total of 727.00 from holding Virtus InfraCap Preferred or generate 47.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 37.9% |
| Values | Daily Returns |
Virtus InfraCap Preferred vs. Nuveen Preferred and
Performance |
| Timeline |
| Virtus InfraCap Preferred |
| Nuveen Preferred |
Virtus InfraCap and Nuveen Preferred Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus InfraCap and Nuveen Preferred
The main advantage of trading using opposite Virtus InfraCap and Nuveen Preferred positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus InfraCap position performs unexpectedly, Nuveen Preferred 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 Nuveen Preferred will offset losses from the drop in Nuveen Preferred'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 |
| Nuveen Preferred vs. Innovator SP Investment | Nuveen Preferred vs. First Trust Preferred | Nuveen Preferred vs. iShares Preferred and | Nuveen Preferred vs. Invesco Financial Preferred |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |