Correlation Between Virtus Emerging and Balanced Fund
Can any of the company-specific risk be diversified away by investing in both Virtus Emerging and Balanced Fund 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 Emerging and Balanced Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus Emerging Markets and Balanced Fund Investor, you can compare the effects of market volatilities on Virtus Emerging and Balanced Fund 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 Emerging with a short position of Balanced Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Emerging and Balanced Fund.
Diversification Opportunities for Virtus Emerging and Balanced Fund
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Virtus and Balanced is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Emerging Markets and Balanced Fund Investor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Balanced Fund Investor and Virtus Emerging 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 Emerging Markets are associated (or correlated) with Balanced Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Balanced Fund Investor has no effect on the direction of Virtus Emerging i.e., Virtus Emerging and Balanced Fund go up and down completely randomly.
Pair Corralation between Virtus Emerging and Balanced Fund
Assuming the 90 days horizon Virtus Emerging Markets is expected to generate 1.58 times more return on investment than Balanced Fund. However, Virtus Emerging is 1.58 times more volatile than Balanced Fund Investor. It trades about 0.2 of its potential returns per unit of risk. Balanced Fund Investor is currently generating about 0.21 per unit of risk. If you would invest 651.00 in Virtus Emerging Markets on September 14, 2024 and sell it today you would earn a total of 16.00 from holding Virtus Emerging Markets or generate 2.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtus Emerging Markets vs. Balanced Fund Investor
Performance |
| Timeline |
| Virtus Emerging Markets |
| Balanced Fund Investor |
Virtus Emerging and Balanced Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus Emerging and Balanced Fund
The main advantage of trading using opposite Virtus Emerging and Balanced Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Emerging position performs unexpectedly, Balanced Fund 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 Balanced Fund will offset losses from the drop in Balanced Fund's long position.| Virtus Emerging vs. Balanced Fund Investor | Virtus Emerging vs. Volumetric Fund Volumetric | Virtus Emerging vs. T Rowe Price | Virtus Emerging vs. Arrow Managed Futures |
| Balanced Fund vs. Strategic Allocation Servative | Balanced Fund vs. Strategic Allocation Aggressive | Balanced Fund vs. Value Fund Investor | Balanced Fund vs. International Growth 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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