Correlation Between Virtus Nfj and Commodityrealreturn

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

By analyzing existing cross correlation between Virtus Nfj Large Cap and Commodityrealreturn Strategy Fund, you can compare the effects of market volatilities on Virtus Nfj and Commodityrealreturn 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 Nfj with a short position of Commodityrealreturn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Nfj and Commodityrealreturn.

Diversification Opportunities for Virtus Nfj and Commodityrealreturn

0.12

Correlation Coefficient

Virtus Nfj  Commodityrealreturn

Average diversification

The 3 months correlation between Virtus and Commodityrealreturn is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Nfj Large Cap and Commodityrealreturn Strategy F in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commodityrealreturn and Virtus Nfj 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 Nfj Large Cap are associated (or correlated) with Commodityrealreturn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commodityrealreturn has no effect on the direction of Virtus Nfj i.e., Virtus Nfj and Commodityrealreturn go up and down completely randomly.

Pair Corralation between Virtus Nfj and Commodityrealreturn

Assuming the 90 days horizon Virtus Nfj Large Cap is expected to under-perform the Commodityrealreturn. In addition to that, Virtus Nfj is 1.2 times more volatile than Commodityrealreturn Strategy Fund. It trades about -0.01 of its total potential returns per unit of risk. Commodityrealreturn Strategy Fund is currently generating about 0.23 per unit of volatility. If you would invest  1,236  in Commodityrealreturn Strategy Fund on December 27, 2024 and sell it today you would earn a total of  120.00  from holding Commodityrealreturn Strategy Fund or generate 9.71% return on investment over 90 days.

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

Virtus Nfj Large Cap  vs.  Commodityrealreturn Strategy F

Virtus Nfj Large

Risk-Adjusted Performance

Very Weak

Over the last 90 days Virtus Nfj Large Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Virtus Nfj is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Commodityrealreturn

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Commodityrealreturn Strategy Fund are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Commodityrealreturn may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Virtus Nfj and Commodityrealreturn

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

The idea behind Virtus Nfj Large Cap and Commodityrealreturn Strategy 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.

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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.