Correlation Between Virtus Multi-strategy and The Hartford
Can any of the company-specific risk be diversified away by investing in both Virtus Multi-strategy and The Hartford 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 The Hartford 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 The Hartford Balanced, you can compare the effects of market volatilities on Virtus Multi-strategy and The Hartford 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 The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Multi-strategy and The Hartford.
Diversification Opportunities for Virtus Multi-strategy and The Hartford
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Virtus and The is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Multi Strategy Target and The Hartford Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Balanced 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 The Hartford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Balanced has no effect on the direction of Virtus Multi-strategy i.e., Virtus Multi-strategy and The Hartford go up and down completely randomly.
Pair Corralation between Virtus Multi-strategy and The Hartford
Assuming the 90 days horizon Virtus Multi-strategy is expected to generate 1.04 times less return on investment than The Hartford. But when comparing it to its historical volatility, Virtus Multi Strategy Target is 1.25 times less risky than The Hartford. It trades about 0.1 of its potential returns per unit of risk. The Hartford Balanced is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,657 in The Hartford Balanced on October 10, 2024 and sell it today you would earn a total of 237.00 from holding The Hartford Balanced or generate 14.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Virtus Multi Strategy Target vs. The Hartford Balanced
Performance |
| Timeline |
| Virtus Multi Strategy |
| Hartford Balanced |
Virtus Multi-strategy and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus Multi-strategy and The Hartford
The main advantage of trading using opposite Virtus Multi-strategy and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Multi-strategy position performs unexpectedly, The Hartford 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 The Hartford will offset losses from the drop in The Hartford's long position.| Virtus Multi-strategy vs. Bbh Intermediate Municipal | Virtus Multi-strategy vs. Enhanced Fixed Income | Virtus Multi-strategy vs. T Rowe Price | Virtus Multi-strategy vs. Alliancebernstein Bond |
| The Hartford vs. College Retirement Equities | The Hartford vs. Dimensional Retirement Income | The Hartford vs. Putnam Retirement Advantage | The Hartford vs. Qs Moderate Growth |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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