Correlation Between Virtus Real and Abrdn Emerging
Can any of the company-specific risk be diversified away by investing in both Virtus Real and Abrdn Emerging 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 Abrdn Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus Real Estate and Abrdn Emerging Markets, you can compare the effects of market volatilities on Virtus Real and Abrdn Emerging 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 Abrdn Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Real and Abrdn Emerging.
Diversification Opportunities for Virtus Real and Abrdn Emerging
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between VIRTUS and Abrdn is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Real Estate and Abrdn Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abrdn Emerging Markets 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 Estate are associated (or correlated) with Abrdn Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abrdn Emerging Markets has no effect on the direction of Virtus Real i.e., Virtus Real and Abrdn Emerging go up and down completely randomly.
Pair Corralation between Virtus Real and Abrdn Emerging
Assuming the 90 days horizon Virtus Real is expected to generate 11.28 times less return on investment than Abrdn Emerging. But when comparing it to its historical volatility, Virtus Real Estate is 1.43 times less risky than Abrdn Emerging. It trades about 0.02 of its potential returns per unit of risk. Abrdn Emerging Markets is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 595.00 in Abrdn Emerging Markets on September 4, 2025 and sell it today you would earn a total of 80.00 from holding Abrdn Emerging Markets or generate 13.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtus Real Estate vs. Abrdn Emerging Markets
Performance |
| Timeline |
| Virtus Real Estate |
| Abrdn Emerging Markets |
Virtus Real and Abrdn Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus Real and Abrdn Emerging
The main advantage of trading using opposite Virtus Real and Abrdn Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Real position performs unexpectedly, Abrdn Emerging 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 Abrdn Emerging will offset losses from the drop in Abrdn Emerging's long position.| Virtus Real vs. Wilmington Diversified Income | Virtus Real vs. Pimco Diversified Income | Virtus Real vs. Allianzgi Diversified Income | Virtus Real vs. Lord Abbett Diversified |
| Abrdn Emerging vs. Rational Dividend Capture | Abrdn Emerging vs. Rbc Emerging Markets | Abrdn Emerging vs. Arrow Managed Futures | Abrdn Emerging vs. Federated Municipal High |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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