Correlation Between Virtus Investment and Intercontinental
Can any of the company-specific risk be diversified away by investing in both Virtus Investment and Intercontinental 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 Intercontinental 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 Intercontinental Exchange, you can compare the effects of market volatilities on Virtus Investment and Intercontinental 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 Intercontinental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Investment and Intercontinental.
Diversification Opportunities for Virtus Investment and Intercontinental
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Virtus and Intercontinental is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Investment Partners and Intercontinental Exchange in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intercontinental Exchange 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 Intercontinental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intercontinental Exchange has no effect on the direction of Virtus Investment i.e., Virtus Investment and Intercontinental go up and down completely randomly.
Pair Corralation between Virtus Investment and Intercontinental
Assuming the 90 days horizon Virtus Investment Partners is expected to generate 1.38 times more return on investment than Intercontinental. However, Virtus Investment is 1.38 times more volatile than Intercontinental Exchange. It trades about 0.08 of its potential returns per unit of risk. Intercontinental Exchange is currently generating about 0.1 per unit of risk. If you would invest 19,405 in Virtus Investment Partners on September 12, 2024 and sell it today you would earn a total of 3,995 from holding Virtus Investment Partners or generate 20.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
Virtus Investment Partners vs. Intercontinental Exchange
Performance |
| Timeline |
| Virtus Investment |
| Intercontinental Exchange |
Virtus Investment and Intercontinental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus Investment and Intercontinental
The main advantage of trading using opposite Virtus Investment and Intercontinental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Investment position performs unexpectedly, Intercontinental 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 Intercontinental will offset losses from the drop in Intercontinental'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 |
| Intercontinental vs. Bumrungrad Hospital Public | Intercontinental vs. Virtus Investment Partners | Intercontinental vs. DiamondRock Hospitality | Intercontinental vs. YOOMA WELLNESS INC |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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