Correlation Between Virtus Multi and James Aggressive
Can any of the company-specific risk be diversified away by investing in both Virtus Multi and James Aggressive 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 James Aggressive 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 James Aggressive Allocation, you can compare the effects of market volatilities on Virtus Multi and James Aggressive 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 James Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Multi and James Aggressive.
Diversification Opportunities for Virtus Multi and James Aggressive
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Virtus and James is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Multi Sector Short and James Aggressive Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on James Aggressive All 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 James Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of James Aggressive All has no effect on the direction of Virtus Multi i.e., Virtus Multi and James Aggressive go up and down completely randomly.
Pair Corralation between Virtus Multi and James Aggressive
Assuming the 90 days horizon Virtus Multi is expected to generate 3.25 times less return on investment than James Aggressive. But when comparing it to its historical volatility, Virtus Multi Sector Short is 4.25 times less risky than James Aggressive. It trades about 0.16 of its potential returns per unit of risk. James Aggressive Allocation is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,193 in James Aggressive Allocation on September 14, 2024 and sell it today you would earn a total of 268.00 from holding James Aggressive Allocation or generate 22.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Virtus Multi Sector Short vs. James Aggressive Allocation
Performance |
| Timeline |
| Virtus Multi Sector |
| James Aggressive All |
Virtus Multi and James Aggressive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus Multi and James Aggressive
The main advantage of trading using opposite Virtus Multi and James Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Multi position performs unexpectedly, James Aggressive 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 James Aggressive will offset losses from the drop in James Aggressive's 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 |
| James Aggressive vs. James Small Cap | James Aggressive vs. James Balanced Golden | James Aggressive vs. James Balanced Golden | James Aggressive vs. James Micro 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |