Correlation Between Virtus Investment and Lyft
Can any of the company-specific risk be diversified away by investing in both Virtus Investment and Lyft 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 Lyft 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 Lyft Inc, you can compare the effects of market volatilities on Virtus Investment and Lyft 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 Lyft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Investment and Lyft.
Diversification Opportunities for Virtus Investment and Lyft
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Virtus and Lyft is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Investment Partners and Lyft Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyft Inc 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 Lyft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyft Inc has no effect on the direction of Virtus Investment i.e., Virtus Investment and Lyft go up and down completely randomly.
Pair Corralation between Virtus Investment and Lyft
Assuming the 90 days horizon Virtus Investment Partners is expected to under-perform the Lyft. But the stock apears to be less risky and, when comparing its historical volatility, Virtus Investment Partners is 1.63 times less risky than Lyft. The stock trades about -0.22 of its potential returns per unit of risk. The Lyft Inc is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 1,302 in Lyft Inc on November 28, 2024 and sell it today you would lose (132.00) from holding Lyft Inc or give up 10.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Virtus Investment Partners vs. Lyft Inc
Performance |
| Timeline |
| Virtus Investment |
| Lyft Inc |
Virtus Investment and Lyft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus Investment and Lyft
The main advantage of trading using opposite Virtus Investment and Lyft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Investment position performs unexpectedly, Lyft 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 Lyft will offset losses from the drop in Lyft's long position.| Virtus Investment vs. ARISTOCRAT LEISURE | Virtus Investment vs. ANTA Sports Products | Virtus Investment vs. Playtech plc | Virtus Investment vs. Singapore Telecommunications Limited |
| Lyft vs. PROSIEBENSAT1 MEDIADR4 | Lyft vs. PARKEN SPORT ENT | Lyft vs. East Africa Metals | Lyft vs. Fuji Media Holdings |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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