Correlation Between Nasdaq 100 and Virtus International
Can any of the company-specific risk be diversified away by investing in both Nasdaq 100 and Virtus International 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 Nasdaq 100 and Virtus International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq 100 2x Strategy and Virtus International Real, you can compare the effects of market volatilities on Nasdaq 100 and Virtus International 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 Nasdaq 100 with a short position of Virtus International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq 100 and Virtus International.
Diversification Opportunities for Nasdaq 100 and Virtus International
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nasdaq and Virtus is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 2x Strategy and Virtus International Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus International Real and Nasdaq 100 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 Nasdaq 100 2x Strategy are associated (or correlated) with Virtus International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus International Real has no effect on the direction of Nasdaq 100 i.e., Nasdaq 100 and Virtus International go up and down completely randomly.
Pair Corralation between Nasdaq 100 and Virtus International
If you would invest 38,210 in Nasdaq 100 2x Strategy on September 4, 2024 and sell it today you would earn a total of 4,438 from holding Nasdaq 100 2x Strategy or generate 11.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Nasdaq 100 2x Strategy vs. Virtus International Real
Performance |
| Timeline |
| Nasdaq 100 2x |
| Virtus International Real |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nasdaq 100 and Virtus International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq 100 and Virtus International
The main advantage of trading using opposite Nasdaq 100 and Virtus International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq 100 position performs unexpectedly, Virtus International 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 Virtus International will offset losses from the drop in Virtus International's long position.| Nasdaq 100 vs. L Abbett Growth | Nasdaq 100 vs. Pace Smallmedium Growth | Nasdaq 100 vs. William Blair Growth | Nasdaq 100 vs. Artisan Small Cap |
| Virtus International vs. Fisher Small Cap | Virtus International vs. Small Cap Value | Virtus International vs. Kinetics Small Cap | Virtus International vs. Chartwell Small 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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