Correlation Between Virtus Investment and Bechtle AG
Can any of the company-specific risk be diversified away by investing in both Virtus Investment and Bechtle AG 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 Bechtle AG 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 Bechtle AG, you can compare the effects of market volatilities on Virtus Investment and Bechtle AG 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 Bechtle AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Investment and Bechtle AG.
Diversification Opportunities for Virtus Investment and Bechtle AG
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Virtus and Bechtle is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Investment Partners and Bechtle AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bechtle AG 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 Bechtle AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bechtle AG has no effect on the direction of Virtus Investment i.e., Virtus Investment and Bechtle AG go up and down completely randomly.
Pair Corralation between Virtus Investment and Bechtle AG
Assuming the 90 days horizon Virtus Investment Partners is expected to generate 1.17 times more return on investment than Bechtle AG. However, Virtus Investment is 1.17 times more volatile than Bechtle AG. It trades about 0.06 of its potential returns per unit of risk. Bechtle AG is currently generating about -0.06 per unit of risk. If you would invest 18,011 in Virtus Investment Partners on September 1, 2024 and sell it today you would earn a total of 5,389 from holding Virtus Investment Partners or generate 29.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.64% |
| Values | Daily Returns |
Virtus Investment Partners vs. Bechtle AG
Performance |
| Timeline |
| Virtus Investment |
| Bechtle AG |
Virtus Investment and Bechtle AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus Investment and Bechtle AG
The main advantage of trading using opposite Virtus Investment and Bechtle AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Investment position performs unexpectedly, Bechtle AG 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 Bechtle AG will offset losses from the drop in Bechtle AG's long position.| Virtus Investment vs. MTI WIRELESS EDGE | Virtus Investment vs. REGAL ASIAN INVESTMENTS | Virtus Investment vs. SLR Investment Corp | Virtus Investment vs. AOYAMA TRADING |
| Bechtle AG vs. FUJITSU LTD ADR | Bechtle AG vs. Superior Plus Corp | Bechtle AG vs. NMI Holdings | Bechtle AG 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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