Correlation Between Virtus Convertible and Mainstay Convertible
Can any of the company-specific risk be diversified away by investing in both Virtus Convertible and Mainstay Convertible 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 Mainstay Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus Convertible and Mainstay Vertible Fund, you can compare the effects of market volatilities on Virtus Convertible and Mainstay Convertible 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 Mainstay Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Convertible and Mainstay Convertible.
Diversification Opportunities for Virtus Convertible and Mainstay Convertible
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Virtus and Mainstay is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Convertible and Mainstay Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Convertible 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 Mainstay Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Convertible has no effect on the direction of Virtus Convertible i.e., Virtus Convertible and Mainstay Convertible go up and down completely randomly.
Pair Corralation between Virtus Convertible and Mainstay Convertible
Assuming the 90 days horizon Virtus Convertible is expected to generate 1.33 times more return on investment than Mainstay Convertible. However, Virtus Convertible is 1.33 times more volatile than Mainstay Vertible Fund. It trades about -0.17 of its potential returns per unit of risk. Mainstay Vertible Fund is currently generating about -0.32 per unit of risk. If you would invest 3,671 in Virtus Convertible on October 12, 2024 and sell it today you would lose (110.00) from holding Virtus Convertible or give up 3.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtus Convertible vs. Mainstay Vertible Fund
Performance |
| Timeline |
| Virtus Convertible |
| Mainstay Convertible |
Virtus Convertible and Mainstay Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus Convertible and Mainstay Convertible
The main advantage of trading using opposite Virtus Convertible and Mainstay Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Convertible position performs unexpectedly, Mainstay Convertible 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 Mainstay Convertible will offset losses from the drop in Mainstay Convertible's long position.| Virtus Convertible vs. Victory Rs Partners | Virtus Convertible vs. Valic Company I | Virtus Convertible vs. Lsv Small Cap | Virtus Convertible vs. Heartland Value Plus |
| Mainstay Convertible vs. Mainstay High Yield | Mainstay Convertible vs. Mainstay Income Builder | Mainstay Convertible vs. Mainstay Sp 500 | Mainstay Convertible vs. Mainstay Large 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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