Correlation Between Virtus Investment and Bayerische Motoren
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By analyzing existing cross correlation between Virtus Investment Partners and Bayerische Motoren Werke, you can compare the effects of market volatilities on Virtus Investment and Bayerische Motoren 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 Bayerische Motoren. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Investment and Bayerische Motoren.
Diversification Opportunities for Virtus Investment and Bayerische Motoren
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Virtus and Bayerische is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Investment Partners and Bayerische Motoren Werke in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bayerische Motoren Werke 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 Bayerische Motoren. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bayerische Motoren Werke has no effect on the direction of Virtus Investment i.e., Virtus Investment and Bayerische Motoren go up and down completely randomly.
Pair Corralation between Virtus Investment and Bayerische Motoren
Assuming the 90 days horizon Virtus Investment is expected to generate 6.09 times less return on investment than Bayerische Motoren. But when comparing it to its historical volatility, Virtus Investment Partners is 1.07 times less risky than Bayerische Motoren. It trades about 0.1 of its potential returns per unit of risk. Bayerische Motoren Werke is currently generating about 0.54 of returns per unit of risk over similar time horizon. If you would invest 6,200 in Bayerische Motoren Werke on September 14, 2024 and sell it today you would earn a total of 1,135 from holding Bayerische Motoren Werke or generate 18.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtus Investment Partners vs. Bayerische Motoren Werke
Performance |
| Timeline |
| Virtus Investment |
| Bayerische Motoren Werke |
Virtus Investment and Bayerische Motoren Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus Investment and Bayerische Motoren
The main advantage of trading using opposite Virtus Investment and Bayerische Motoren positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Investment position performs unexpectedly, Bayerische Motoren 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 Bayerische Motoren will offset losses from the drop in Bayerische Motoren's long position.| Virtus Investment vs. Ameriprise Financial | Virtus Investment vs. Ares Management Corp | Virtus Investment vs. Superior Plus Corp | Virtus Investment vs. SIVERS SEMICONDUCTORS AB |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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