Correlation Between Virtus Investment and Barings Participation
Can any of the company-specific risk be diversified away by investing in both Virtus Investment and Barings Participation 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 Investment and Barings Participation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus Investment Partners, and Barings Participation Investors, you can compare the effects of market volatilities on Virtus Investment and Barings Participation 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 Investment with a short position of Barings Participation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Investment and Barings Participation.
Diversification Opportunities for Virtus Investment and Barings Participation
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Virtus and Barings is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Investment Partners, and Barings Participation Investor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings Participation and Virtus Investment 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 Investment Partners, are associated (or correlated) with Barings Participation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings Participation has no effect on the direction of Virtus Investment i.e., Virtus Investment and Barings Participation go up and down completely randomly.
Pair Corralation between Virtus Investment and Barings Participation
Given the investment horizon of 90 days Virtus Investment is expected to generate 1.36 times less return on investment than Barings Participation. In addition to that, Virtus Investment is 1.18 times more volatile than Barings Participation Investors. It trades about 0.04 of its total potential returns per unit of risk. Barings Participation Investors is currently generating about 0.06 per unit of volatility. If you would invest 1,074 in Barings Participation Investors on November 1, 2024 and sell it today you would earn a total of 548.00 from holding Barings Participation Investors or generate 51.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtus Investment Partners, vs. Barings Participation Investor
Performance |
| Timeline |
| Virtus Investment |
| Barings Participation |
Virtus Investment and Barings Participation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus Investment and Barings Participation
The main advantage of trading using opposite Virtus Investment and Barings Participation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Investment position performs unexpectedly, Barings Participation 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 Barings Participation will offset losses from the drop in Barings Participation's long position.| Virtus Investment vs. Invesco Advantage MIT | Virtus Investment vs. Invesco Municipal Trust | Virtus Investment vs. Invesco California Value | Virtus Investment vs. Tri Continental Closed |
| Barings Participation vs. Allianzgi Equity Convertible | Barings Participation vs. Cohen Steers Total | Barings Participation vs. Blackrock Floating Rate | Barings Participation vs. MFS Investment Grade |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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