Correlation Between Virtus Real and Mainstay Government
Can any of the company-specific risk be diversified away by investing in both Virtus Real and Mainstay Government 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 Government 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 Government Fund, you can compare the effects of market volatilities on Virtus Real and Mainstay Government 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 Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Real and Mainstay Government.
Diversification Opportunities for Virtus Real and Mainstay Government
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Virtus and Mainstay is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Real Estate and Mainstay Government Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Government 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 Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Government has no effect on the direction of Virtus Real i.e., Virtus Real and Mainstay Government go up and down completely randomly.
Pair Corralation between Virtus Real and Mainstay Government
Assuming the 90 days horizon Virtus Real Estate is expected to generate 1.75 times more return on investment than Mainstay Government. However, Virtus Real is 1.75 times more volatile than Mainstay Government Fund. It trades about 0.33 of its potential returns per unit of risk. Mainstay Government Fund is currently generating about 0.28 per unit of risk. If you would invest 1,883 in Virtus Real Estate on December 4, 2024 and sell it today you would earn a total of 75.00 from holding Virtus Real Estate or generate 3.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Virtus Real Estate vs. Mainstay Government Fund
Performance |
| Timeline |
| Virtus Real Estate |
| Mainstay Government |
Virtus Real and Mainstay Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus Real and Mainstay Government
The main advantage of trading using opposite Virtus Real and Mainstay Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Real position performs unexpectedly, Mainstay Government 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 Government will offset losses from the drop in Mainstay Government's long position.| Virtus Real vs. Deutsche Gold Precious | Virtus Real vs. Wells Fargo Advantage | Virtus Real vs. The Gold Bullion | Virtus Real vs. Gabelli Gold Fund |
| Mainstay Government vs. Channing Intrinsic Value | Mainstay Government vs. Small Midcap Dividend Income | Mainstay Government vs. Nt International Small Mid | Mainstay Government vs. Small Pany Growth |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |