Correlation Between Virtus High and Day Hagan
Can any of the company-specific risk be diversified away by investing in both Virtus High and Day Hagan 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 Day Hagan 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 Day Hagan Tactical, you can compare the effects of market volatilities on Virtus High and Day Hagan 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 Day Hagan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus High and Day Hagan.
Diversification Opportunities for Virtus High and Day Hagan
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Virtus and Day is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Virtus High Yield and Day Hagan Tactical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Day Hagan Tactical 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 Day Hagan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Day Hagan Tactical has no effect on the direction of Virtus High i.e., Virtus High and Day Hagan go up and down completely randomly.
Pair Corralation between Virtus High and Day Hagan
If you would invest 358.00 in Virtus High Yield on September 3, 2024 and sell it today you would earn a total of 24.00 from holding Virtus High Yield or generate 6.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.68% |
| Values | Daily Returns |
Virtus High Yield vs. Day Hagan Tactical
Performance |
| Timeline |
| Virtus High Yield |
| Day Hagan Tactical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Virtus High and Day Hagan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus High and Day Hagan
The main advantage of trading using opposite Virtus High and Day Hagan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus High position performs unexpectedly, Day Hagan 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 Day Hagan will offset losses from the drop in Day Hagan's long position.| Virtus High vs. Ppm High Yield | Virtus High vs. Guggenheim High Yield | Virtus High vs. Fidelity Capital Income | Virtus High vs. Pace High Yield |
| Day Hagan vs. Jpmorgan Equity Income | Day Hagan vs. Multimedia Portfolio Multimedia | Day Hagan vs. Ultra Short Fixed Income | Day Hagan vs. Cutler Equity |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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