Correlation Between Virtus Multi-strategy and Voya Index
Can any of the company-specific risk be diversified away by investing in both Virtus Multi-strategy and Voya Index 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 Multi-strategy and Voya Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus Multi Strategy Target and Voya Index Plus, you can compare the effects of market volatilities on Virtus Multi-strategy and Voya Index 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 Multi-strategy with a short position of Voya Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Multi-strategy and Voya Index.
Diversification Opportunities for Virtus Multi-strategy and Voya Index
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Virtus and Voya is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Multi Strategy Target and Voya Index Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Index Plus and Virtus Multi-strategy 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 Multi Strategy Target are associated (or correlated) with Voya Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Index Plus has no effect on the direction of Virtus Multi-strategy i.e., Virtus Multi-strategy and Voya Index go up and down completely randomly.
Pair Corralation between Virtus Multi-strategy and Voya Index
Assuming the 90 days horizon Virtus Multi Strategy Target is expected to generate 0.2 times more return on investment than Voya Index. However, Virtus Multi Strategy Target is 5.03 times less risky than Voya Index. It trades about -0.41 of its potential returns per unit of risk. Voya Index Plus is currently generating about -0.09 per unit of risk. If you would invest 1,829 in Virtus Multi Strategy Target on October 9, 2024 and sell it today you would lose (29.00) from holding Virtus Multi Strategy Target or give up 1.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtus Multi Strategy Target vs. Voya Index Plus
Performance |
| Timeline |
| Virtus Multi Strategy |
| Voya Index Plus |
Virtus Multi-strategy and Voya Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus Multi-strategy and Voya Index
The main advantage of trading using opposite Virtus Multi-strategy and Voya Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Multi-strategy position performs unexpectedly, Voya Index 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 Voya Index will offset losses from the drop in Voya Index's long position.| Virtus Multi-strategy vs. T Rowe Price | Virtus Multi-strategy vs. Scharf Fund Retail | Virtus Multi-strategy vs. Qs Global Equity | Virtus Multi-strategy vs. Gmo Global Equity |
| Voya Index vs. Locorr Market Trend | Voya Index vs. T Rowe Price | Voya Index vs. Qs Large Cap | Voya Index vs. Tax Managed Large Cap |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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