Correlation Between Virtus Kar and 17136MAB8

Can any of the company-specific risk be diversified away by investing in both Virtus Kar and 17136MAB8 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 Kar and 17136MAB8 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Virtus Kar Mid Cap and CHD 5 15 JUN 52, you can compare the effects of market volatilities on Virtus Kar and 17136MAB8 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 Kar with a short position of 17136MAB8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Kar and 17136MAB8.

Diversification Opportunities for Virtus Kar and 17136MAB8

-0.05

Correlation Coefficient

Virtus Kar  17136MAB8

Good diversification

The 3 months correlation between Virtus and 17136MAB8 is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Kar Mid Cap and CHD 5 15 JUN 52 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 17136MAB8 and Virtus Kar 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 Kar Mid Cap are associated (or correlated) with 17136MAB8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 17136MAB8 has no effect on the direction of Virtus Kar i.e., Virtus Kar and 17136MAB8 go up and down completely randomly.

Pair Corralation between Virtus Kar and 17136MAB8

Assuming the 90 days horizon Virtus Kar Mid Cap is expected to under-perform the 17136MAB8. In addition to that, Virtus Kar is 1.32 times more volatile than CHD 5 15 JUN 52. It trades about -0.12 of its total potential returns per unit of risk. CHD 5 15 JUN 52 is currently generating about -0.02 per unit of volatility. If you would invest  9,083  in CHD 5 15 JUN 52 on December 30, 2024 and sell it today you would lose (71.00) from holding CHD 5 15 JUN 52 or give up 0.78% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	62.9%
Values	Daily Returns

Virtus Kar Mid Cap  vs.  CHD 5 15 JUN 52

Virtus Kar Mid

Risk-Adjusted Performance

Very Weak

Over the last 90 days Virtus Kar Mid Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's forward-looking signals remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

17136MAB8

Risk-Adjusted Performance

Very Weak

Over the last 90 days CHD 5 15 JUN 52 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 17136MAB8 is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Virtus Kar and 17136MAB8

The main advantage of trading using opposite Virtus Kar and 17136MAB8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Kar position performs unexpectedly, 17136MAB8 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 17136MAB8 will offset losses from the drop in 17136MAB8's long position.

The idea behind Virtus Kar Mid Cap and CHD 5 15 JUN 52 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.