Correlation Between Virtus Convertible and Mainstay Large
Can any of the company-specific risk be diversified away by investing in both Virtus Convertible and Mainstay Large 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 Large 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 Large Cap, you can compare the effects of market volatilities on Virtus Convertible and Mainstay Large 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 Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Convertible and Mainstay Large.
Diversification Opportunities for Virtus Convertible and Mainstay Large
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Virtus and Mainstay is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Convertible and Mainstay Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Large Cap 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 Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Large Cap has no effect on the direction of Virtus Convertible i.e., Virtus Convertible and Mainstay Large go up and down completely randomly.
Pair Corralation between Virtus Convertible and Mainstay Large
Assuming the 90 days horizon Virtus Convertible is expected to generate 0.62 times more return on investment than Mainstay Large. However, Virtus Convertible is 1.62 times less risky than Mainstay Large. It trades about 0.67 of its potential returns per unit of risk. Mainstay Large Cap is currently generating about 0.34 per unit of risk. If you would invest 3,431 in Virtus Convertible on September 4, 2024 and sell it today you would earn a total of 291.00 from holding Virtus Convertible or generate 8.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Virtus Convertible vs. Mainstay Large Cap
Performance |
| Timeline |
| Virtus Convertible |
| Mainstay Large Cap |
Virtus Convertible and Mainstay Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus Convertible and Mainstay Large
The main advantage of trading using opposite Virtus Convertible and Mainstay Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Convertible position performs unexpectedly, Mainstay Large 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 Large will offset losses from the drop in Mainstay Large's long position.| Virtus Convertible vs. Gmo High Yield | Virtus Convertible vs. Pace High Yield | Virtus Convertible vs. Calvert High Yield | Virtus Convertible vs. Pgim High Yield |
| Mainstay Large vs. Dunham Large Cap | Mainstay Large vs. Qs Large Cap | Mainstay Large vs. Vela Large Cap | Mainstay Large vs. Jhancock Disciplined Value |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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