Correlation Between Virtus Rampart and Vanguard Multi
Can any of the company-specific risk be diversified away by investing in both Virtus Rampart and Vanguard Multi 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 Rampart and Vanguard Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus Rampart Enhanced and Vanguard Multi Sector Income, you can compare the effects of market volatilities on Virtus Rampart and Vanguard Multi 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 Rampart with a short position of Vanguard Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Rampart and Vanguard Multi.
Diversification Opportunities for Virtus Rampart and Vanguard Multi
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Virtus and Vanguard is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Rampart Enhanced and Vanguard Multi Sector Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Multi Sector and Virtus Rampart 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 Rampart Enhanced are associated (or correlated) with Vanguard Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Multi Sector has no effect on the direction of Virtus Rampart i.e., Virtus Rampart and Vanguard Multi go up and down completely randomly.
Pair Corralation between Virtus Rampart and Vanguard Multi
Assuming the 90 days horizon Virtus Rampart Enhanced is expected to generate 4.5 times more return on investment than Vanguard Multi. However, Virtus Rampart is 4.5 times more volatile than Vanguard Multi Sector Income. It trades about 0.18 of its potential returns per unit of risk. Vanguard Multi Sector Income is currently generating about 0.14 per unit of risk. If you would invest 2,194 in Virtus Rampart Enhanced on April 30, 2025 and sell it today you would earn a total of 35.00 from holding Virtus Rampart Enhanced or generate 1.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtus Rampart Enhanced vs. Vanguard Multi Sector Income
Performance |
| Timeline |
| Virtus Rampart Enhanced |
| Vanguard Multi Sector |
Virtus Rampart and Vanguard Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus Rampart and Vanguard Multi
The main advantage of trading using opposite Virtus Rampart and Vanguard Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Rampart position performs unexpectedly, Vanguard Multi 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 Vanguard Multi will offset losses from the drop in Vanguard Multi's long position.| Virtus Rampart vs. Ab Municipal Bond | Virtus Rampart vs. Gamco Global Telecommunications | Virtus Rampart vs. Ab Municipal Bond | Virtus Rampart vs. Equalize Community Development |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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