Correlation Between Virtus Real and Astor Long/short
Can any of the company-specific risk be diversified away by investing in both Virtus Real and Astor Long/short 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 Real and Astor Long/short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus Real Estate and Astor Longshort Fund, you can compare the effects of market volatilities on Virtus Real and Astor Long/short 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 Real with a short position of Astor Long/short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Real and Astor Long/short.
Diversification Opportunities for Virtus Real and Astor Long/short
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Virtus and Astor is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Real Estate and Astor Longshort Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Long/short and Virtus Real 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 Real Estate are associated (or correlated) with Astor Long/short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astor Long/short has no effect on the direction of Virtus Real i.e., Virtus Real and Astor Long/short go up and down completely randomly.
Pair Corralation between Virtus Real and Astor Long/short
Assuming the 90 days horizon Virtus Real Estate is expected to generate 2.48 times more return on investment than Astor Long/short. However, Virtus Real is 2.48 times more volatile than Astor Longshort Fund. It trades about 0.26 of its potential returns per unit of risk. Astor Longshort Fund is currently generating about 0.46 per unit of risk. If you would invest 2,088 in Virtus Real Estate on September 1, 2024 and sell it today you would earn a total of 104.00 from holding Virtus Real Estate or generate 4.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtus Real Estate vs. Astor Longshort Fund
Performance |
| Timeline |
| Virtus Real Estate |
| Astor Long/short |
Virtus Real and Astor Long/short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus Real and Astor Long/short
The main advantage of trading using opposite Virtus Real and Astor Long/short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Real position performs unexpectedly, Astor Long/short 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 Astor Long/short will offset losses from the drop in Astor Long/short's long position.| Virtus Real vs. Wasatch Global Opportunities | Virtus Real vs. Mirova Global Green | Virtus Real vs. Dreyfusstandish Global Fixed | Virtus Real vs. Morgan Stanley Global |
| Astor Long/short vs. Fidelity Real Estate | Astor Long/short vs. Prudential Real Estate | Astor Long/short vs. Deutsche Real Estate | Astor Long/short vs. Virtus Real Estate |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Transaction History View history of all your transactions and understand their impact on performance |