Correlation Between Virtus Kar and Akre Focus
Can any of the company-specific risk be diversified away by investing in both Virtus Kar and Akre Focus 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 Kar and Akre Focus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus Kar Small Cap and Akre Focus Fund, you can compare the effects of market volatilities on Virtus Kar and Akre Focus 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 Kar with a short position of Akre Focus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Kar and Akre Focus.
Diversification Opportunities for Virtus Kar and Akre Focus
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Virtus and Akre is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Kar Small Cap and Akre Focus Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akre Focus Fund and Virtus Kar 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 Kar Small Cap are associated (or correlated) with Akre Focus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akre Focus Fund has no effect on the direction of Virtus Kar i.e., Virtus Kar and Akre Focus go up and down completely randomly.
Pair Corralation between Virtus Kar and Akre Focus
Assuming the 90 days horizon Virtus Kar Small Cap is expected to generate 1.99 times more return on investment than Akre Focus. However, Virtus Kar is 1.99 times more volatile than Akre Focus Fund. It trades about 0.37 of its potential returns per unit of risk. Akre Focus Fund is currently generating about 0.54 per unit of risk. If you would invest 3,879 in Virtus Kar Small Cap on September 1, 2024 and sell it today you would earn a total of 417.00 from holding Virtus Kar Small Cap or generate 10.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Virtus Kar Small Cap vs. Akre Focus Fund
Performance |
| Timeline |
| Virtus Kar Small |
| Akre Focus Fund |
Virtus Kar and Akre Focus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus Kar and Akre Focus
The main advantage of trading using opposite Virtus Kar and Akre Focus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Kar position performs unexpectedly, Akre Focus 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 Akre Focus will offset losses from the drop in Akre Focus' long position.| Virtus Kar vs. Virtus Kar Small Cap | Virtus Kar vs. Virtus Kar Small Cap | Virtus Kar vs. Virtus Kar Mid Cap | Virtus Kar vs. Virtus Kar Small Cap |
| Akre Focus vs. Osterweis Strategic Income | Akre Focus vs. Doubleline Low Duration | Akre Focus vs. Doubleline Total Return | Akre Focus vs. Vanguard Dividend 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |