Correlation Between Virtus High and Bond Fund
Can any of the company-specific risk be diversified away by investing in both Virtus High and Bond Fund 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 High and Bond Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus High Yield and Bond Fund Class, you can compare the effects of market volatilities on Virtus High and Bond Fund 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 High with a short position of Bond Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus High and Bond Fund.
Diversification Opportunities for Virtus High and Bond Fund
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Virtus and Bond is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Virtus High Yield and Bond Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bond Fund Class and Virtus High 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 High Yield are associated (or correlated) with Bond Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bond Fund Class has no effect on the direction of Virtus High i.e., Virtus High and Bond Fund go up and down completely randomly.
Pair Corralation between Virtus High and Bond Fund
Assuming the 90 days horizon Virtus High Yield is expected to generate 0.5 times more return on investment than Bond Fund. However, Virtus High Yield is 1.98 times less risky than Bond Fund. It trades about 0.27 of its potential returns per unit of risk. Bond Fund Class is currently generating about 0.08 per unit of risk. If you would invest 378.00 in Virtus High Yield on August 31, 2024 and sell it today you would earn a total of 4.00 from holding Virtus High Yield or generate 1.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtus High Yield vs. Bond Fund Class
Performance |
| Timeline |
| Virtus High Yield |
| Bond Fund Class |
Virtus High and Bond Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus High and Bond Fund
The main advantage of trading using opposite Virtus High and Bond Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus High position performs unexpectedly, Bond Fund 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 Bond Fund will offset losses from the drop in Bond Fund's long position.| Virtus High vs. Vanguard High Yield Corporate | Virtus High vs. Vanguard High Yield Porate | Virtus High vs. Blackrock Hi Yld | Virtus High vs. Blackrock High Yield |
| Bond Fund vs. Mesirow Financial High | Bond Fund vs. Artisan High Income | Bond Fund vs. Legg Mason Partners | Bond Fund vs. Virtus High Yield |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |