Correlation Between Virtus Convertible and Growth Opportunities
Can any of the company-specific risk be diversified away by investing in both Virtus Convertible and Growth Opportunities 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 Growth Opportunities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus Convertible and Growth Opportunities Fund, you can compare the effects of market volatilities on Virtus Convertible and Growth Opportunities 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 Growth Opportunities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Convertible and Growth Opportunities.
Diversification Opportunities for Virtus Convertible and Growth Opportunities
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Virtus and Growth is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Convertible and Growth Opportunities Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth Opportunities 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 Growth Opportunities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Opportunities has no effect on the direction of Virtus Convertible i.e., Virtus Convertible and Growth Opportunities go up and down completely randomly.
Pair Corralation between Virtus Convertible and Growth Opportunities
Assuming the 90 days horizon Virtus Convertible is expected to generate 0.62 times more return on investment than Growth Opportunities. However, Virtus Convertible is 1.6 times less risky than Growth Opportunities. It trades about 0.67 of its potential returns per unit of risk. Growth Opportunities Fund is currently generating about 0.33 per unit of risk. If you would invest 3,431 in Virtus Convertible on September 3, 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 | 100.0% |
| Values | Daily Returns |
Virtus Convertible vs. Growth Opportunities Fund
Performance |
| Timeline |
| Virtus Convertible |
| Growth Opportunities |
Virtus Convertible and Growth Opportunities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus Convertible and Growth Opportunities
The main advantage of trading using opposite Virtus Convertible and Growth Opportunities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Convertible position performs unexpectedly, Growth Opportunities 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 Growth Opportunities will offset losses from the drop in Growth Opportunities' long position.| Virtus Convertible vs. Franklin Vertible Securities | Virtus Convertible vs. Franklin Vertible Securities | Virtus Convertible vs. Allianzgi Vertible Fund |
| Growth Opportunities vs. Allianzgi Convertible Income | Growth Opportunities vs. Virtus Convertible | Growth Opportunities vs. Rationalpier 88 Convertible | Growth Opportunities vs. Fidelity Sai Convertible |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |