Correlation Between Virtus Convertible and Pace Municipal
Can any of the company-specific risk be diversified away by investing in both Virtus Convertible and Pace Municipal 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 Pace Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus Convertible and Pace Municipal Fixed, you can compare the effects of market volatilities on Virtus Convertible and Pace Municipal 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 Pace Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Convertible and Pace Municipal.
Diversification Opportunities for Virtus Convertible and Pace Municipal
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Virtus and Pace is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Convertible and Pace Municipal Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pace Municipal Fixed 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 Pace Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pace Municipal Fixed has no effect on the direction of Virtus Convertible i.e., Virtus Convertible and Pace Municipal go up and down completely randomly.
Pair Corralation between Virtus Convertible and Pace Municipal
Assuming the 90 days horizon Virtus Convertible is expected to generate 3.3 times more return on investment than Pace Municipal. However, Virtus Convertible is 3.3 times more volatile than Pace Municipal Fixed. It trades about 0.19 of its potential returns per unit of risk. Pace Municipal Fixed is currently generating about 0.11 per unit of risk. If you would invest 3,229 in Virtus Convertible on September 3, 2024 and sell it today you would earn a total of 493.00 from holding Virtus Convertible or generate 15.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtus Convertible vs. Pace Municipal Fixed
Performance |
| Timeline |
| Virtus Convertible |
| Pace Municipal Fixed |
Virtus Convertible and Pace Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus Convertible and Pace Municipal
The main advantage of trading using opposite Virtus Convertible and Pace Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Convertible position performs unexpectedly, Pace Municipal 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 Pace Municipal will offset losses from the drop in Pace Municipal's long position.| Virtus Convertible vs. Franklin Vertible Securities | Virtus Convertible vs. Franklin Vertible Securities | Virtus Convertible vs. Allianzgi Vertible Fund |
| Pace Municipal vs. Lord Abbett Convertible | Pace Municipal vs. Virtus Convertible | Pace Municipal vs. Allianzgi Convertible Income | Pace Municipal vs. Absolute Convertible Arbitrage |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |