Correlation Between Fisher Fixed and Virtus High

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

By analyzing existing cross correlation between Fisher Fixed Income and Virtus High Yield, you can compare the effects of market volatilities on Fisher Fixed and Virtus High 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 Fisher Fixed with a short position of Virtus High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fisher Fixed and Virtus High.

Diversification Opportunities for Fisher Fixed and Virtus High

0.04

Correlation Coefficient

Fisher Fixed  Virtus High

Significant diversification

The 3 months correlation between Fisher and Virtus is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Fisher Fixed Income and Virtus High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus High Yield and Fisher Fixed 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 Fisher Fixed Income are associated (or correlated) with Virtus High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus High Yield has no effect on the direction of Fisher Fixed i.e., Fisher Fixed and Virtus High go up and down completely randomly.

Pair Corralation between Fisher Fixed and Virtus High

Assuming the 90 days horizon Fisher Fixed is expected to generate 1.68 times less return on investment than Virtus High. In addition to that, Fisher Fixed is 1.41 times more volatile than Virtus High Yield. It trades about 0.08 of its total potential returns per unit of risk. Virtus High Yield is currently generating about 0.2 per unit of volatility. If you would invest  377.00  in Virtus High Yield on October 23, 2024 and sell it today you would earn a total of  3.00  from holding Virtus High Yield or generate 0.8% return on investment over 90 days.

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

Fisher Fixed Income  vs.  Virtus High Yield

Fisher Fixed Income

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fisher Fixed Income has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental drivers, Fisher Fixed is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Virtus High Yield

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Virtus High Yield are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Virtus High is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Fisher Fixed and Virtus High

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

The idea behind Fisher Fixed Income and Virtus High Yield 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.