Correlation Between Virtus Multi and Guggenheim Managed
Can any of the company-specific risk be diversified away by investing in both Virtus Multi and Guggenheim Managed 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 and Guggenheim Managed 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 Guggenheim Managed Futures, you can compare the effects of market volatilities on Virtus Multi and Guggenheim Managed 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 with a short position of Guggenheim Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Multi and Guggenheim Managed.
Diversification Opportunities for Virtus Multi and Guggenheim Managed
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Virtus and Guggenheim is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Multi Strategy Target and Guggenheim Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Managed and Virtus Multi 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 Guggenheim Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Managed has no effect on the direction of Virtus Multi i.e., Virtus Multi and Guggenheim Managed go up and down completely randomly.
Pair Corralation between Virtus Multi and Guggenheim Managed
Assuming the 90 days horizon Virtus Multi Strategy Target is expected to generate 0.32 times more return on investment than Guggenheim Managed. However, Virtus Multi Strategy Target is 3.16 times less risky than Guggenheim Managed. It trades about 0.17 of its potential returns per unit of risk. Guggenheim Managed Futures is currently generating about -0.12 per unit of risk. If you would invest 1,798 in Virtus Multi Strategy Target on October 30, 2024 and sell it today you would earn a total of 12.00 from holding Virtus Multi Strategy Target or generate 0.67% return on investment 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. Guggenheim Managed Futures
Performance |
| Timeline |
| Virtus Multi Strategy |
| Guggenheim Managed |
Virtus Multi and Guggenheim Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus Multi and Guggenheim Managed
The main advantage of trading using opposite Virtus Multi and Guggenheim Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Multi position performs unexpectedly, Guggenheim Managed 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 Guggenheim Managed will offset losses from the drop in Guggenheim Managed's long position.| Virtus Multi vs. Inverse Emerging Markets | Virtus Multi vs. Saat Market Growth | Virtus Multi vs. Ashmore Emerging Markets | Virtus Multi vs. Ab All Market |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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