Correlation Between Virtus Investment and BJs Wholesale
Can any of the company-specific risk be diversified away by investing in both Virtus Investment and BJs Wholesale 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 Investment and BJs Wholesale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus Investment Partners and BJs Wholesale Club, you can compare the effects of market volatilities on Virtus Investment and BJs Wholesale 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 Investment with a short position of BJs Wholesale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Investment and BJs Wholesale.
Diversification Opportunities for Virtus Investment and BJs Wholesale
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Virtus and BJs is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Investment Partners and BJs Wholesale Club in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BJs Wholesale Club and Virtus Investment 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 Investment Partners are associated (or correlated) with BJs Wholesale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BJs Wholesale Club has no effect on the direction of Virtus Investment i.e., Virtus Investment and BJs Wholesale go up and down completely randomly.
Pair Corralation between Virtus Investment and BJs Wholesale
Assuming the 90 days horizon Virtus Investment Partners is expected to generate 1.22 times more return on investment than BJs Wholesale. However, Virtus Investment is 1.22 times more volatile than BJs Wholesale Club. It trades about 0.06 of its potential returns per unit of risk. BJs Wholesale Club is currently generating about 0.07 per unit of risk. If you would invest 20,385 in Virtus Investment Partners on September 3, 2024 and sell it today you would earn a total of 3,015 from holding Virtus Investment Partners or generate 14.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtus Investment Partners vs. BJs Wholesale Club
Performance |
| Timeline |
| Virtus Investment |
| BJs Wholesale Club |
Virtus Investment and BJs Wholesale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus Investment and BJs Wholesale
The main advantage of trading using opposite Virtus Investment and BJs Wholesale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Investment position performs unexpectedly, BJs Wholesale 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 BJs Wholesale will offset losses from the drop in BJs Wholesale's long position.| Virtus Investment vs. Blackstone Group | Virtus Investment vs. BlackRock | Virtus Investment vs. The Bank of | Virtus Investment vs. Ameriprise Financial |
| BJs Wholesale vs. Walmart | BJs Wholesale vs. Superior Plus Corp | BJs Wholesale vs. NMI Holdings | BJs Wholesale vs. Origin Agritech |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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