Correlation Between Virtus Bond and Amg River
Can any of the company-specific risk be diversified away by investing in both Virtus Bond and Amg River 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 Bond and Amg River into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus Bond Fund and Amg River Road, you can compare the effects of market volatilities on Virtus Bond and Amg River 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 Bond with a short position of Amg River. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Bond and Amg River.
Diversification Opportunities for Virtus Bond and Amg River
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Virtus and Amg is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Bond Fund and Amg River Road in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg River Road and Virtus Bond 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 Bond Fund are associated (or correlated) with Amg River. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg River Road has no effect on the direction of Virtus Bond i.e., Virtus Bond and Amg River go up and down completely randomly.
Pair Corralation between Virtus Bond and Amg River
Assuming the 90 days horizon Virtus Bond is expected to generate 3.36 times less return on investment than Amg River. But when comparing it to its historical volatility, Virtus Bond Fund is 2.7 times less risky than Amg River. It trades about 0.06 of its potential returns per unit of risk. Amg River Road is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 864.00 in Amg River Road on August 31, 2024 and sell it today you would earn a total of 257.00 from holding Amg River Road or generate 29.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtus Bond Fund vs. Amg River Road
Performance |
| Timeline |
| Virtus Bond Fund |
| Amg River Road |
Virtus Bond and Amg River Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus Bond and Amg River
The main advantage of trading using opposite Virtus Bond and Amg River positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Bond position performs unexpectedly, Amg River 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 Amg River will offset losses from the drop in Amg River's long position.| Virtus Bond vs. Calamos Dynamic Convertible | Virtus Bond vs. The Gamco Global | Virtus Bond vs. Fidelity Sai Convertible | Virtus Bond vs. Absolute Convertible Arbitrage |
| Amg River vs. Amg River Road | Amg River vs. Champlain Small Pany | Amg River vs. Amg River Road | Amg River vs. Marsico Global 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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