Correlation Between Victory Trivalent and International Value

Can any of the company-specific risk be diversified away by investing in both Victory Trivalent and International Value 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 Victory Trivalent and International Value into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Victory Trivalent International and International Value Fund, you can compare the effects of market volatilities on Victory Trivalent and International Value 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 Victory Trivalent with a short position of International Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victory Trivalent and International Value.

Diversification Opportunities for Victory Trivalent and International Value

0.94

Correlation Coefficient

Victory Trivalent  International Value

Almost no diversification

The 3 months correlation between Victory and International is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Victory Trivalent Internationa and International Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Value and Victory Trivalent 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 Victory Trivalent International are associated (or correlated) with International Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Value has no effect on the direction of Victory Trivalent i.e., Victory Trivalent and International Value go up and down completely randomly.

Pair Corralation between Victory Trivalent and International Value

Assuming the 90 days horizon Victory Trivalent is expected to generate 1.94 times less return on investment than International Value. In addition to that, Victory Trivalent is 1.08 times more volatile than International Value Fund. It trades about 0.14 of its total potential returns per unit of risk. International Value Fund is currently generating about 0.29 per unit of volatility. If you would invest  836.00  in International Value Fund on December 24, 2024 and sell it today you would earn a total of  131.00  from holding International Value Fund or generate 15.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Victory Trivalent Internationa  vs.  International Value Fund

Victory Trivalent

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Victory Trivalent International are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Victory Trivalent may actually be approaching a critical reversion point that can send shares even higher in April 2025.

International Value

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in International Value Fund are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, International Value showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Victory Trivalent and International Value

The main advantage of trading using opposite Victory Trivalent and International Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victory Trivalent position performs unexpectedly, International Value 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 International Value will offset losses from the drop in International Value's long position.

The idea behind Victory Trivalent International and International Value Fund pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.