Correlation Between Virtus Bond and Virtus Ceredex
Can any of the company-specific risk be diversified away by investing in both Virtus Bond and Virtus Ceredex 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 Bond and Virtus Ceredex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus Bond Fund and Virtus Ceredex Small Cap, you can compare the effects of market volatilities on Virtus Bond and Virtus Ceredex 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 Bond with a short position of Virtus Ceredex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Bond and Virtus Ceredex.
Diversification Opportunities for Virtus Bond and Virtus Ceredex
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Virtus and Virtus is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Bond Fund and Virtus Ceredex Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus Ceredex Small and Virtus Bond 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 Bond Fund are associated (or correlated) with Virtus Ceredex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus Ceredex Small has no effect on the direction of Virtus Bond i.e., Virtus Bond and Virtus Ceredex go up and down completely randomly.
Pair Corralation between Virtus Bond and Virtus Ceredex
Assuming the 90 days horizon Virtus Bond is expected to generate 2.8 times less return on investment than Virtus Ceredex. But when comparing it to its historical volatility, Virtus Bond Fund is 4.58 times less risky than Virtus Ceredex. It trades about 0.21 of its potential returns per unit of risk. Virtus Ceredex Small Cap is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 686.00 in Virtus Ceredex Small Cap on June 8, 2025 and sell it today you would earn a total of 59.00 from holding Virtus Ceredex Small Cap or generate 8.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtus Bond Fund vs. Virtus Ceredex Small Cap
Performance |
| Timeline |
| Virtus Bond Fund |
| Virtus Ceredex Small |
Virtus Bond and Virtus Ceredex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus Bond and Virtus Ceredex
The main advantage of trading using opposite Virtus Bond and Virtus Ceredex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Bond position performs unexpectedly, Virtus Ceredex 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 Ceredex will offset losses from the drop in Virtus Ceredex's long position.| Virtus Bond vs. Vanguard Multi Sector Income | Virtus Bond vs. Virtus Multi Sector Short | Virtus Bond vs. Ridgeworth Seix High | Virtus Bond vs. Ridgeworth Innovative Growth |
| Virtus Ceredex vs. Buffalo Large Cap | Virtus Ceredex vs. Fidelity Large Cap | Virtus Ceredex vs. Aqr Large Cap | Virtus Ceredex vs. Vanguard Large Cap Index |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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