Correlation Between Virtus Investment and New York
Can any of the company-specific risk be diversified away by investing in both Virtus Investment and New York 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 New York 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 New York Mortgage, you can compare the effects of market volatilities on Virtus Investment and New York 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 New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Investment and New York.
Diversification Opportunities for Virtus Investment and New York
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Virtus and New is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Investment Partners, and New York Mortgage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New York Mortgage 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 New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New York Mortgage has no effect on the direction of Virtus Investment i.e., Virtus Investment and New York go up and down completely randomly.
Pair Corralation between Virtus Investment and New York
Given the investment horizon of 90 days Virtus Investment is expected to generate 1.46 times less return on investment than New York. In addition to that, Virtus Investment is 1.44 times more volatile than New York Mortgage. It trades about 0.17 of its total potential returns per unit of risk. New York Mortgage is currently generating about 0.35 per unit of volatility. If you would invest 528.00 in New York Mortgage on August 27, 2024 and sell it today you would earn a total of 70.00 from holding New York Mortgage or generate 13.26% 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. New York Mortgage
Performance |
| Timeline |
| Virtus Investment |
| New York Mortgage |
Virtus Investment and New York Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus Investment and New York
The main advantage of trading using opposite Virtus Investment and New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Investment position performs unexpectedly, New York 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 New York will offset losses from the drop in New York'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 |
| New York vs. Two Harbors Investments | New York vs. ARMOUR Residential REIT | New York vs. Annaly Capital Management | New York vs. AGNC Investment Corp |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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