Correlation Between Virtus High and City National
Can any of the company-specific risk be diversified away by investing in both Virtus High and City National 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 City National 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 City National Rochdale, you can compare the effects of market volatilities on Virtus High and City National 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 City National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus High and City National.
Diversification Opportunities for Virtus High and City National
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Virtus and City is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Virtus High Yield and City National Rochdale in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City National Rochdale 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 City National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City National Rochdale has no effect on the direction of Virtus High i.e., Virtus High and City National go up and down completely randomly.
Pair Corralation between Virtus High and City National
Assuming the 90 days horizon Virtus High Yield is expected to generate 0.26 times more return on investment than City National. However, Virtus High Yield is 3.92 times less risky than City National. It trades about -0.31 of its potential returns per unit of risk. City National Rochdale is currently generating about -0.22 per unit of risk. If you would invest 383.00 in Virtus High Yield on October 7, 2024 and sell it today you would lose (3.00) from holding Virtus High Yield or give up 0.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtus High Yield vs. City National Rochdale
Performance |
| Timeline |
| Virtus High Yield |
| City National Rochdale |
Virtus High and City National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus High and City National
The main advantage of trading using opposite Virtus High and City National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus High position performs unexpectedly, City National 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 City National will offset losses from the drop in City National's long position.| Virtus High vs. Avantis Large Cap | Virtus High vs. M Large Cap | Virtus High vs. Fidelity Large Cap | Virtus High vs. Pace Large Value |
| City National vs. Qs Global Equity | City National vs. Wisdomtree Siegel Global | City National vs. Mirova Global Green | City National vs. Kinetics Global Fund |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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