Correlation Between Vanguard Total and Virtus Global
Can any of the company-specific risk be diversified away by investing in both Vanguard Total and Virtus Global 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 Vanguard Total and Virtus Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Total International and Virtus Global Multi Sector, you can compare the effects of market volatilities on Vanguard Total and Virtus Global 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 Vanguard Total with a short position of Virtus Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Total and Virtus Global.
Diversification Opportunities for Vanguard Total and Virtus Global
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vanguard and Virtus is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Total International and Virtus Global Multi Sector in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus Global Multi and Vanguard Total 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 Vanguard Total International are associated (or correlated) with Virtus Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus Global Multi has no effect on the direction of Vanguard Total i.e., Vanguard Total and Virtus Global go up and down completely randomly.
Pair Corralation between Vanguard Total and Virtus Global
Assuming the 90 days horizon Vanguard Total International is expected to generate 2.17 times more return on investment than Virtus Global. However, Vanguard Total is 2.17 times more volatile than Virtus Global Multi Sector. It trades about 0.13 of its potential returns per unit of risk. Virtus Global Multi Sector is currently generating about 0.09 per unit of risk. If you would invest 2,161 in Vanguard Total International on June 5, 2025 and sell it today you would earn a total of 113.00 from holding Vanguard Total International or generate 5.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard Total International vs. Virtus Global Multi Sector
Performance |
| Timeline |
| Vanguard Total Inter |
| Virtus Global Multi |
Vanguard Total and Virtus Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Total and Virtus Global
The main advantage of trading using opposite Vanguard Total and Virtus Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Total position performs unexpectedly, Virtus Global 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 Global will offset losses from the drop in Virtus Global's long position.| Vanguard Total vs. Financial Services Portfolio | Vanguard Total vs. John Hancock Financial | Vanguard Total vs. Blackrock Financial Institutions | Vanguard Total vs. Davis Financial Fund |
| Virtus Global vs. Transamerica Asset Allocation | Virtus Global vs. T Rowe Price | Virtus Global vs. Nova Fund Class | Virtus Global vs. Siit Large Cap |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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