Correlation Between Virtus Real and BFIT
Can any of the company-specific risk be diversified away by investing in both Virtus Real and BFIT 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 Real and BFIT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus Real Asset and BFIT, you can compare the effects of market volatilities on Virtus Real and BFIT 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 Real with a short position of BFIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Real and BFIT.
Diversification Opportunities for Virtus Real and BFIT
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Virtus and BFIT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Real Asset and BFIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BFIT and Virtus Real 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 Real Asset are associated (or correlated) with BFIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BFIT has no effect on the direction of Virtus Real i.e., Virtus Real and BFIT go up and down completely randomly.
Pair Corralation between Virtus Real and BFIT
If you would invest (100.00) in BFIT on December 3, 2024 and sell it today you would earn a total of 100.00 from holding BFIT or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Virtus Real Asset vs. BFIT
Performance |
Timeline |
Virtus Real Asset |
BFIT |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Virtus Real and BFIT Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Virtus Real and BFIT
The main advantage of trading using opposite Virtus Real and BFIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Real position performs unexpectedly, BFIT 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 BFIT will offset losses from the drop in BFIT's long position.Virtus Real vs. Virtus Private Credit | Virtus Real vs. US Diversified Real | Virtus Real vs. Nuveen Short Term REIT | Virtus Real vs. JPMorgan BetaBuilders MSCI |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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