Correlation Between Main Thematic and Virtus Real
Can any of the company-specific risk be diversified away by investing in both Main Thematic and Virtus Real 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 Main Thematic and Virtus Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Main Thematic Innovation and Virtus Real Asset, you can compare the effects of market volatilities on Main Thematic and Virtus Real 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 Main Thematic with a short position of Virtus Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Main Thematic and Virtus Real.
Diversification Opportunities for Main Thematic and Virtus Real
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Main and Virtus is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Main Thematic Innovation and Virtus Real Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus Real Asset and Main Thematic 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 Main Thematic Innovation are associated (or correlated) with Virtus Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus Real Asset has no effect on the direction of Main Thematic i.e., Main Thematic and Virtus Real go up and down completely randomly.
Pair Corralation between Main Thematic and Virtus Real
Given the investment horizon of 90 days Main Thematic is expected to generate 1.26 times less return on investment than Virtus Real. In addition to that, Main Thematic is 4.01 times more volatile than Virtus Real Asset. It trades about 0.12 of its total potential returns per unit of risk. Virtus Real Asset is currently generating about 0.6 per unit of volatility. If you would invest 2,227 in Virtus Real Asset on October 20, 2024 and sell it today you would earn a total of 146.00 from holding Virtus Real Asset or generate 6.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Main Thematic Innovation vs. Virtus Real Asset
Performance |
| Timeline |
| Main Thematic Innovation |
| Virtus Real Asset |
Main Thematic and Virtus Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Main Thematic and Virtus Real
The main advantage of trading using opposite Main Thematic and Virtus Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Main Thematic position performs unexpectedly, Virtus Real 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 Real will offset losses from the drop in Virtus Real's long position.| Main Thematic vs. Main Sector Rotation | Main Thematic vs. Global X Thematic | Main Thematic vs. Franklin Exponential Data | Main Thematic vs. Goldman Sachs Innovate |
| Virtus Real vs. Virtus Private Credit | Virtus Real vs. US Diversified Real | Virtus Real vs. Nuveen Short Term REIT | Virtus Real vs. JPMorgan BetaBuilders MSCI |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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