Correlation Between Blackrock Munivest and Virtus Global

Can any of the company-specific risk be diversified away by investing in both Blackrock Munivest and Virtus Global 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 Blackrock Munivest and Virtus Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Blackrock Munivest and Virtus Global Multi, you can compare the effects of market volatilities on Blackrock Munivest and Virtus Global 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 Blackrock Munivest with a short position of Virtus Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Munivest and Virtus Global.

Diversification Opportunities for Blackrock Munivest and Virtus Global

0.65

Correlation Coefficient

Blackrock Munivest  Virtus Global

Poor diversification

The 3 months correlation between Blackrock and Virtus is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Munivest and Virtus Global Multi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus Global Multi and Blackrock Munivest 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 Blackrock Munivest are associated (or correlated) with Virtus Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus Global Multi has no effect on the direction of Blackrock Munivest i.e., Blackrock Munivest and Virtus Global go up and down completely randomly.

Pair Corralation between Blackrock Munivest and Virtus Global

Considering the 90-day investment horizon Blackrock Munivest is expected to under-perform the Virtus Global. But the fund apears to be less risky and, when comparing its historical volatility, Blackrock Munivest is 1.13 times less risky than Virtus Global. The fund trades about -0.46 of its potential returns per unit of risk. The Virtus Global Multi is currently generating about -0.21 of returns per unit of risk over similar time horizon. If you would invest  794.00  in Virtus Global Multi on September 28, 2024 and sell it today you would lose (24.00) from holding Virtus Global Multi or give up 3.02% of portfolio value over 90 days.

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

Blackrock Munivest  vs.  Virtus Global Multi

Blackrock Munivest

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Blackrock Munivest has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest uncertain performance, the Fund's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the fund private investors.

Virtus Global Multi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Virtus Global Multi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, Virtus Global is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Blackrock Munivest and Virtus Global

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

The idea behind Blackrock Munivest and Virtus Global Multi 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.

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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.