Correlation Between ETFis Series and Virtus InfraCap
Can any of the company-specific risk be diversified away by investing in both ETFis Series 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 ETFis Series and Virtus InfraCap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ETFis Series Trust and Virtus InfraCap Preferred, you can compare the effects of market volatilities on ETFis Series 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 ETFis Series with a short position of Virtus InfraCap. Check out your portfolio center. Please also check ongoing floating volatility patterns of ETFis Series and Virtus InfraCap.
Diversification Opportunities for ETFis Series and Virtus InfraCap
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ETFis and Virtus is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding ETFis Series Trust 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 ETFis Series 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 ETFis Series Trust 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 ETFis Series i.e., ETFis Series and Virtus InfraCap go up and down completely randomly.
Pair Corralation between ETFis Series and Virtus InfraCap
Given the investment horizon of 90 days ETFis Series Trust is expected to under-perform the Virtus InfraCap. But the etf apears to be less risky and, when comparing its historical volatility, ETFis Series Trust is 1.1 times less risky than Virtus InfraCap. The etf trades about -0.17 of its potential returns per unit of risk. The Virtus InfraCap Preferred is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,256 in Virtus InfraCap Preferred on August 28, 2024 and sell it today you would lose (1.00) from holding Virtus InfraCap Preferred or give up 0.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
ETFis Series Trust vs. Virtus InfraCap Preferred
Performance |
| Timeline |
| ETFis Series Trust |
| Virtus InfraCap Preferred |
ETFis Series and Virtus InfraCap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ETFis Series and Virtus InfraCap
The main advantage of trading using opposite ETFis Series and Virtus InfraCap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ETFis Series 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.| ETFis Series vs. ETF Series Solutions | ETFis Series vs. Aquagold International | ETFis Series vs. Morningstar Unconstrained Allocation | ETFis Series vs. High Yield Municipal Fund |
| 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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