Correlation Between Virtus Real and Mainstay Epoch
Can any of the company-specific risk be diversified away by investing in both Virtus Real and Mainstay Epoch 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 Mainstay Epoch 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 Mainstay Epoch Global, you can compare the effects of market volatilities on Virtus Real and Mainstay Epoch 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 Mainstay Epoch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Real and Mainstay Epoch.
Diversification Opportunities for Virtus Real and Mainstay Epoch
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Virtus and Mainstay is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Real Estate and Mainstay Epoch Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Epoch Global 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 Mainstay Epoch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Epoch Global has no effect on the direction of Virtus Real i.e., Virtus Real and Mainstay Epoch go up and down completely randomly.
Pair Corralation between Virtus Real and Mainstay Epoch
Assuming the 90 days horizon Virtus Real Estate is expected to generate 1.47 times more return on investment than Mainstay Epoch. However, Virtus Real is 1.47 times more volatile than Mainstay Epoch Global. It trades about 0.08 of its potential returns per unit of risk. Mainstay Epoch Global is currently generating about 0.07 per unit of risk. If you would invest 1,636 in Virtus Real Estate on September 12, 2024 and sell it today you would earn a total of 465.00 from holding Virtus Real Estate or generate 28.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtus Real Estate vs. Mainstay Epoch Global
Performance |
| Timeline |
| Virtus Real Estate |
| Mainstay Epoch Global |
Virtus Real and Mainstay Epoch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus Real and Mainstay Epoch
The main advantage of trading using opposite Virtus Real and Mainstay Epoch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Real position performs unexpectedly, Mainstay Epoch 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 Mainstay Epoch will offset losses from the drop in Mainstay Epoch's long position.| Virtus Real vs. Forum Real Estate | Virtus Real vs. Goldman Sachs Real | Virtus Real vs. Nuveen Real Estate | Virtus Real vs. Amg Managers Centersquare |
| Mainstay Epoch vs. Adams Natural Resources | Mainstay Epoch vs. Jennison Natural Resources | Mainstay Epoch vs. Dreyfus Natural Resources | Mainstay Epoch vs. Calvert Global Energy |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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