Correlation Between Victory Capital and New York
Can any of the company-specific risk be diversified away by investing in both Victory Capital and New York 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 Victory Capital and New York into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Victory Capital Holdings and New York Mortgage, you can compare the effects of market volatilities on Victory Capital and New York 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 Victory Capital with a short position of New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victory Capital and New York.
Diversification Opportunities for Victory Capital and New York
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Victory and New is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Victory Capital Holdings and New York Mortgage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New York Mortgage and Victory Capital 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 Victory Capital Holdings are associated (or correlated) with New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New York Mortgage has no effect on the direction of Victory Capital i.e., Victory Capital and New York go up and down completely randomly.
Pair Corralation between Victory Capital and New York
Given the investment horizon of 90 days Victory Capital Holdings is expected to generate 1.75 times more return on investment than New York. However, Victory Capital is 1.75 times more volatile than New York Mortgage. It trades about 0.24 of its potential returns per unit of risk. New York Mortgage is currently generating about 0.27 per unit of risk. If you would invest 6,170 in Victory Capital Holdings on August 31, 2024 and sell it today you would earn a total of 1,033 from holding Victory Capital Holdings or generate 16.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Victory Capital Holdings vs. New York Mortgage
Performance |
| Timeline |
| Victory Capital Holdings |
| New York Mortgage |
Victory Capital and New York Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victory Capital and New York
The main advantage of trading using opposite Victory Capital and New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victory Capital position performs unexpectedly, New York 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 New York will offset losses from the drop in New York's long position.| Victory Capital vs. Federated Premier Municipal | Victory Capital vs. Blackrock Muniyield | Victory Capital vs. Diamond Hill Investment | Victory Capital vs. NXG NextGen Infrastructure |
| New York vs. Two Harbors Investments | New York vs. ARMOUR Residential REIT | New York vs. Annaly Capital Management | New York vs. AGNC Investment Corp |
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 Directory module to find actively traded commodities issued by global exchanges.
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