Correlation Between Rbc Funds and Virtus Convertible
Can any of the company-specific risk be diversified away by investing in both Rbc Funds and Virtus Convertible 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 Rbc Funds and Virtus Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rbc Funds Trust and Virtus Convertible, you can compare the effects of market volatilities on Rbc Funds and Virtus Convertible 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 Rbc Funds with a short position of Virtus Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rbc Funds and Virtus Convertible.
Diversification Opportunities for Rbc Funds and Virtus Convertible
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Rbc and Virtus is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Rbc Funds Trust and Virtus Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus Convertible and Rbc Funds 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 Rbc Funds Trust are associated (or correlated) with Virtus Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus Convertible has no effect on the direction of Rbc Funds i.e., Rbc Funds and Virtus Convertible go up and down completely randomly.
Pair Corralation between Rbc Funds and Virtus Convertible
Assuming the 90 days horizon Rbc Funds is expected to generate 2.65 times less return on investment than Virtus Convertible. But when comparing it to its historical volatility, Rbc Funds Trust is 2.2 times less risky than Virtus Convertible. It trades about 0.25 of its potential returns per unit of risk. Virtus Convertible is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 3,810 in Virtus Convertible on June 9, 2025 and sell it today you would earn a total of 158.00 from holding Virtus Convertible or generate 4.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rbc Funds Trust vs. Virtus Convertible
Performance |
| Timeline |
| Rbc Funds Trust |
| Virtus Convertible |
Rbc Funds and Virtus Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rbc Funds and Virtus Convertible
The main advantage of trading using opposite Rbc Funds and Virtus Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rbc Funds position performs unexpectedly, Virtus Convertible 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 Convertible will offset losses from the drop in Virtus Convertible's long position.| Rbc Funds vs. Invesco Technology Fund | Rbc Funds vs. Janus Global Technology | Rbc Funds vs. Technology Ultrasector Profund | Rbc Funds vs. Dreyfus Technology Growth |
| Virtus Convertible vs. Vanguard Multi Sector Income | Virtus Convertible vs. Virtus Multi Sector Short | Virtus Convertible vs. Ridgeworth Seix High | Virtus Convertible vs. Ridgeworth Innovative Growth |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |