Correlation Between Virtus Investment and OneMain Holdings
Can any of the company-specific risk be diversified away by investing in both Virtus Investment and OneMain Holdings 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 OneMain Holdings 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 OneMain Holdings, you can compare the effects of market volatilities on Virtus Investment and OneMain Holdings 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 OneMain Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Investment and OneMain Holdings.
Diversification Opportunities for Virtus Investment and OneMain Holdings
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Virtus and OneMain is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Investment Partners, and OneMain Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneMain Holdings 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 OneMain Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneMain Holdings has no effect on the direction of Virtus Investment i.e., Virtus Investment and OneMain Holdings go up and down completely randomly.
Pair Corralation between Virtus Investment and OneMain Holdings
Given the investment horizon of 90 days Virtus Investment Partners, is expected to under-perform the OneMain Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Virtus Investment Partners, is 1.24 times less risky than OneMain Holdings. The stock trades about -0.46 of its potential returns per unit of risk. The OneMain Holdings is currently generating about -0.16 of returns per unit of risk over similar time horizon. If you would invest 5,656 in OneMain Holdings on November 27, 2024 and sell it today you would lose (352.00) from holding OneMain Holdings or give up 6.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtus Investment Partners, vs. OneMain Holdings
Performance |
| Timeline |
| Virtus Investment |
| OneMain Holdings |
Virtus Investment and OneMain Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus Investment and OneMain Holdings
The main advantage of trading using opposite Virtus Investment and OneMain Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Investment position performs unexpectedly, OneMain Holdings 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 OneMain Holdings will offset losses from the drop in OneMain Holdings' 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 |
| OneMain Holdings vs. Oaktree Specialty Lending | OneMain Holdings vs. Barings BDC | OneMain Holdings vs. Runway Growth Finance | OneMain Holdings vs. Ally Financial |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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