Correlation Between Virtus Real and Mainstay Equity
Can any of the company-specific risk be diversified away by investing in both Virtus Real and Mainstay Equity 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 Equity 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 Equity Etf, you can compare the effects of market volatilities on Virtus Real and Mainstay Equity 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 Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Real and Mainstay Equity.
Diversification Opportunities for Virtus Real and Mainstay Equity
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Virtus and Mainstay is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Real Estate and Mainstay Equity Etf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Equity Etf 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 Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Equity Etf has no effect on the direction of Virtus Real i.e., Virtus Real and Mainstay Equity go up and down completely randomly.
Pair Corralation between Virtus Real and Mainstay Equity
Assuming the 90 days horizon Virtus Real Estate is expected to generate 1.18 times more return on investment than Mainstay Equity. However, Virtus Real is 1.18 times more volatile than Mainstay Equity Etf. It trades about 0.34 of its potential returns per unit of risk. Mainstay Equity Etf is currently generating about 0.32 per unit of risk. If you would invest 2,064 in Virtus Real Estate on September 2, 2024 and sell it today you would earn a total of 128.00 from holding Virtus Real Estate or generate 6.2% 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. Mainstay Equity Etf
Performance |
| Timeline |
| Virtus Real Estate |
| Mainstay Equity Etf |
Virtus Real and Mainstay Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus Real and Mainstay Equity
The main advantage of trading using opposite Virtus Real and Mainstay Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Real position performs unexpectedly, Mainstay Equity 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 Equity will offset losses from the drop in Mainstay Equity's long position.| Virtus Real vs. Icon Information Technology | Virtus Real vs. Columbia Global Technology | Virtus Real vs. Biotechnology Ultrasector Profund | Virtus Real vs. Dreyfus Technology Growth |
| Mainstay Equity vs. Mainstay High Yield | Mainstay Equity vs. Mainstay Tax Free | Mainstay Equity vs. Mainstay Income Builder | Mainstay Equity vs. Mainstay Large Cap |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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