Correlation Between Virtu Financial and Alta Global
Can any of the company-specific risk be diversified away by investing in both Virtu Financial and Alta Global 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 Virtu Financial and Alta Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtu Financial and Alta Global Group, you can compare the effects of market volatilities on Virtu Financial and Alta Global 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 Virtu Financial with a short position of Alta Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtu Financial and Alta Global.
Diversification Opportunities for Virtu Financial and Alta Global
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Virtu and Alta is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Virtu Financial and Alta Global Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alta Global Group and Virtu Financial 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 Virtu Financial are associated (or correlated) with Alta Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alta Global Group has no effect on the direction of Virtu Financial i.e., Virtu Financial and Alta Global go up and down completely randomly.
Pair Corralation between Virtu Financial and Alta Global
Given the investment horizon of 90 days Virtu Financial is expected to generate 0.3 times more return on investment than Alta Global. However, Virtu Financial is 3.37 times less risky than Alta Global. It trades about 0.15 of its potential returns per unit of risk. Alta Global Group is currently generating about -0.03 per unit of risk. If you would invest 1,700 in Virtu Financial on August 24, 2024 and sell it today you would earn a total of 1,967 from holding Virtu Financial or generate 115.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 66.8% |
| Values | Daily Returns |
Virtu Financial vs. Alta Global Group
Performance |
| Timeline |
| Virtu Financial |
| Alta Global Group |
Virtu Financial and Alta Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtu Financial and Alta Global
The main advantage of trading using opposite Virtu Financial and Alta Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtu Financial position performs unexpectedly, Alta Global 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 Alta Global will offset losses from the drop in Alta Global's long position.| Virtu Financial vs. Perella Weinberg Partners | Virtu Financial vs. Evercore Partners | Virtu Financial vs. Lazard | Virtu Financial vs. Piper Sandler Companies |
| Alta Global vs. Star Equity Holdings | Alta Global vs. NeoGenomics | Alta Global vs. Prenetics Global | Alta Global vs. iSpecimen |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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