Correlation Between Virtus Multi and Boston Partners
Can any of the company-specific risk be diversified away by investing in both Virtus Multi and Boston Partners 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 Boston Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus Multi Sector Short and Boston Partners Longshort, you can compare the effects of market volatilities on Virtus Multi and Boston Partners 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 Boston Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Multi and Boston Partners.
Diversification Opportunities for Virtus Multi and Boston Partners
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Virtus and Boston is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Multi Sector Short and Boston Partners Longshort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Partners Longshort 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 Sector Short are associated (or correlated) with Boston Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Partners Longshort has no effect on the direction of Virtus Multi i.e., Virtus Multi and Boston Partners go up and down completely randomly.
Pair Corralation between Virtus Multi and Boston Partners
Assuming the 90 days horizon Virtus Multi Sector Short is expected to generate 0.31 times more return on investment than Boston Partners. However, Virtus Multi Sector Short is 3.2 times less risky than Boston Partners. It trades about 0.14 of its potential returns per unit of risk. Boston Partners Longshort is currently generating about 0.04 per unit of risk. If you would invest 400.00 in Virtus Multi Sector Short on September 14, 2024 and sell it today you would earn a total of 56.00 from holding Virtus Multi Sector Short or generate 14.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtus Multi Sector Short vs. Boston Partners Longshort
Performance |
| Timeline |
| Virtus Multi Sector |
| Boston Partners Longshort |
Virtus Multi and Boston Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus Multi and Boston Partners
The main advantage of trading using opposite Virtus Multi and Boston Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Multi position performs unexpectedly, Boston Partners 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 Boston Partners will offset losses from the drop in Boston Partners' long position.| Virtus Multi vs. Putnam Money Market | Virtus Multi vs. Franklin Government Money | Virtus Multi vs. Elfun Government Money | Virtus Multi vs. John Hancock Money |
| Boston Partners vs. Boston Partners Longshort | Boston Partners vs. Blackrock Midcap Index | Boston Partners vs. The Arbitrage Fund | Boston Partners vs. Calamos Market Neutral |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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