Correlation Between VIIX and Virtus ETF

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Can any of the company-specific risk be diversified away by investing in both VIIX and Virtus ETF 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 VIIX and Virtus ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VIIX and Virtus ETF Trust, you can compare the effects of market volatilities on VIIX and Virtus ETF 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 VIIX with a short position of Virtus ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIIX and Virtus ETF.

Diversification Opportunities for VIIX and Virtus ETF

VIIXVirtusDiversified AwayVIIXVirtusDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between VIIX and Virtus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding VIIX and Virtus ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus ETF Trust and VIIX 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 VIIX are associated (or correlated) with Virtus ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus ETF Trust has no effect on the direction of VIIX i.e., VIIX and Virtus ETF go up and down completely randomly.

Pair Corralation between VIIX and Virtus ETF

If you would invest  2,557  in Virtus ETF Trust on November 26, 2024 and sell it today you would earn a total of  24.00  from holding Virtus ETF Trust or generate 0.94% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

VIIX  vs.  Virtus ETF Trust

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 0.20.40.60.81.01.21.4
JavaScript chart by amCharts 3.21.15VIIX SDCP
       Timeline  
VIIX 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days VIIX has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong forward indicators, VIIX is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Virtus ETF Trust 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Virtus ETF Trust are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable fundamental indicators, Virtus ETF is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb25.625.725.825.92626.126.226.3

VIIX and Virtus ETF Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15 10203040
JavaScript chart by amCharts 3.21.15VIIX SDCP
       Returns  

Pair Trading with VIIX and Virtus ETF

The main advantage of trading using opposite VIIX and Virtus ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIIX position performs unexpectedly, Virtus ETF 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 Virtus ETF will offset losses from the drop in Virtus ETF's long position.
The idea behind VIIX and Virtus ETF Trust pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

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