Correlation Between Virtus Senior and Virtus Bond
Can any of the company-specific risk be diversified away by investing in both Virtus Senior and Virtus Bond 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 Senior and Virtus Bond into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus Senior Floating and Virtus Bond Fund, you can compare the effects of market volatilities on Virtus Senior and Virtus Bond 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 Senior with a short position of Virtus Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Senior and Virtus Bond.
Diversification Opportunities for Virtus Senior and Virtus Bond
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Virtus and Virtus is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Senior Floating and Virtus Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus Bond Fund and Virtus Senior 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 Senior Floating are associated (or correlated) with Virtus Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus Bond Fund has no effect on the direction of Virtus Senior i.e., Virtus Senior and Virtus Bond go up and down completely randomly.
Pair Corralation between Virtus Senior and Virtus Bond
Assuming the 90 days horizon Virtus Senior Floating is expected to generate 0.49 times more return on investment than Virtus Bond. However, Virtus Senior Floating is 2.03 times less risky than Virtus Bond. It trades about 0.23 of its potential returns per unit of risk. Virtus Bond Fund is currently generating about -0.02 per unit of risk. If you would invest 868.00 in Virtus Senior Floating on August 24, 2024 and sell it today you would earn a total of 6.00 from holding Virtus Senior Floating or generate 0.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtus Senior Floating vs. Virtus Bond Fund
Performance |
| Timeline |
| Virtus Senior Floating |
| Virtus Bond Fund |
Virtus Senior and Virtus Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus Senior and Virtus Bond
The main advantage of trading using opposite Virtus Senior and Virtus Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Senior position performs unexpectedly, Virtus Bond 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 Bond will offset losses from the drop in Virtus Bond's long position.| Virtus Senior vs. Eic Value Fund | Virtus Senior vs. Archer Balanced Fund | Virtus Senior vs. Rbb Fund | Virtus Senior vs. Volumetric Fund Volumetric |
| Virtus Bond vs. Ultra Short Fixed Income | Virtus Bond vs. Guggenheim Long Short | Virtus Bond vs. Rbc Short Duration | Virtus Bond vs. Maryland Short Term Tax Free |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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