Correlation Between Virtus ETF and SPDR Bloomberg
Can any of the company-specific risk be diversified away by investing in both Virtus ETF and SPDR Bloomberg 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 ETF and SPDR Bloomberg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus ETF Trust and SPDR Bloomberg Barclays, you can compare the effects of market volatilities on Virtus ETF and SPDR Bloomberg 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 ETF with a short position of SPDR Bloomberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus ETF and SPDR Bloomberg.
Diversification Opportunities for Virtus ETF and SPDR Bloomberg
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Virtus and SPDR is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Virtus ETF Trust and SPDR Bloomberg Barclays in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Bloomberg Barclays and Virtus ETF 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 ETF Trust are associated (or correlated) with SPDR Bloomberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Bloomberg Barclays has no effect on the direction of Virtus ETF i.e., Virtus ETF and SPDR Bloomberg go up and down completely randomly.
Pair Corralation between Virtus ETF and SPDR Bloomberg
Given the investment horizon of 90 days Virtus ETF Trust is expected to generate 0.97 times more return on investment than SPDR Bloomberg. However, Virtus ETF Trust is 1.03 times less risky than SPDR Bloomberg. It trades about 0.11 of its potential returns per unit of risk. SPDR Bloomberg Barclays is currently generating about 0.05 per unit of risk. If you would invest 2,129 in Virtus ETF Trust on September 3, 2024 and sell it today you would earn a total of 638.00 from holding Virtus ETF Trust or generate 29.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtus ETF Trust vs. SPDR Bloomberg Barclays
Performance |
| Timeline |
| Virtus ETF Trust |
| SPDR Bloomberg Barclays |
Virtus ETF and SPDR Bloomberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus ETF and SPDR Bloomberg
The main advantage of trading using opposite Virtus ETF and SPDR Bloomberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus ETF position performs unexpectedly, SPDR Bloomberg 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 SPDR Bloomberg will offset losses from the drop in SPDR Bloomberg's long position.| Virtus ETF vs. iShares iBoxx Investment | Virtus ETF vs. iShares iBoxx High | Virtus ETF vs. iShares National Muni | Virtus ETF vs. Invesco Emerging Markets |
| SPDR Bloomberg vs. SPDR DoubleLine Emerging | SPDR Bloomberg vs. SPDR SSGA Fixed | SPDR Bloomberg vs. SPDR Series Trust | SPDR Bloomberg vs. SSGA Active Trust |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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