Correlation Between Virtus Convertible and Highland Long/short
Can any of the company-specific risk be diversified away by investing in both Virtus Convertible and Highland Long/short 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 Convertible and Highland Long/short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus Convertible and Highland Longshort Healthcare, you can compare the effects of market volatilities on Virtus Convertible and Highland Long/short 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 Convertible with a short position of Highland Long/short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Convertible and Highland Long/short.
Diversification Opportunities for Virtus Convertible and Highland Long/short
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Virtus and Highland is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Convertible and Highland Longshort Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highland Long/short and Virtus Convertible 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 Convertible are associated (or correlated) with Highland Long/short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highland Long/short has no effect on the direction of Virtus Convertible i.e., Virtus Convertible and Highland Long/short go up and down completely randomly.
Pair Corralation between Virtus Convertible and Highland Long/short
Assuming the 90 days horizon Virtus Convertible is expected to under-perform the Highland Long/short. In addition to that, Virtus Convertible is 2.31 times more volatile than Highland Longshort Healthcare. It trades about -0.19 of its total potential returns per unit of risk. Highland Longshort Healthcare is currently generating about -0.03 per unit of volatility. If you would invest 1,631 in Highland Longshort Healthcare on January 9, 2025 and sell it today you would lose (6.00) from holding Highland Longshort Healthcare or give up 0.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Virtus Convertible vs. Highland Longshort Healthcare
Performance |
| Timeline |
| Virtus Convertible |
| Highland Long/short |
Virtus Convertible and Highland Long/short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus Convertible and Highland Long/short
The main advantage of trading using opposite Virtus Convertible and Highland Long/short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Convertible position performs unexpectedly, Highland Long/short 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 Highland Long/short will offset losses from the drop in Highland Long/short's long position.| Virtus Convertible vs. Calvert Smallmid Cap A | Virtus Convertible vs. Small Midcap Dividend Income | Virtus Convertible vs. Qs Small Capitalization | Virtus Convertible vs. Glg Intl Small |
| Highland Long/short vs. Federated Municipal Ultrashort | Highland Long/short vs. Fzdaqx | Highland Long/short vs. T Rowe Price | Highland Long/short vs. Tax Managed International Equity |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |