Correlation Between Virtus ETF and Vanguard Long
Can any of the company-specific risk be diversified away by investing in both Virtus ETF and Vanguard Long 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 ETF and Vanguard Long into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus ETF Trust and Vanguard Long Term Bond, you can compare the effects of market volatilities on Virtus ETF and Vanguard Long 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 ETF with a short position of Vanguard Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus ETF and Vanguard Long.
Diversification Opportunities for Virtus ETF and Vanguard Long
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Virtus and Vanguard is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Virtus ETF Trust and Vanguard Long Term Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Long Term and Virtus ETF 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 ETF Trust are associated (or correlated) with Vanguard Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Long Term has no effect on the direction of Virtus ETF i.e., Virtus ETF and Vanguard Long go up and down completely randomly.
Pair Corralation between Virtus ETF and Vanguard Long
Given the investment horizon of 90 days Virtus ETF Trust is expected to generate 0.1 times more return on investment than Vanguard Long. However, Virtus ETF Trust is 10.08 times less risky than Vanguard Long. It trades about 0.46 of its potential returns per unit of risk. Vanguard Long Term Bond is currently generating about -0.04 per unit of risk. If you would invest 2,387 in Virtus ETF Trust on October 20, 2024 and sell it today you would earn a total of 12.00 from holding Virtus ETF Trust or generate 0.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtus ETF Trust vs. Vanguard Long Term Bond
Performance |
| Timeline |
| Virtus ETF Trust |
| Vanguard Long Term |
Virtus ETF and Vanguard Long Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus ETF and Vanguard Long
The main advantage of trading using opposite Virtus ETF and Vanguard Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus ETF position performs unexpectedly, Vanguard Long 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 Vanguard Long will offset losses from the drop in Vanguard Long's long position.| Virtus ETF vs. Franklin Liberty Senior | Virtus ETF vs. Virtus Newfleet Multi Sector | Virtus ETF vs. Pacer Pacific Asset | Virtus ETF vs. JPMorgan USD Emerging |
| Vanguard Long vs. Vanguard Intermediate Term Bond | Vanguard Long vs. Vanguard Short Term Bond | Vanguard Long vs. Vanguard Long Term Corporate | Vanguard Long vs. Vanguard Long Term Treasury |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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