Correlation Between Virtu Financial, and Interactive Brokers
Can any of the company-specific risk be diversified away by investing in both Virtu Financial, and Interactive Brokers 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 Virtu Financial, and Interactive Brokers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtu Financial, and Interactive Brokers Group, you can compare the effects of market volatilities on Virtu Financial, and Interactive Brokers 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 Virtu Financial, with a short position of Interactive Brokers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtu Financial, and Interactive Brokers.
Diversification Opportunities for Virtu Financial, and Interactive Brokers
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Virtu and Interactive is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Virtu Financial, and Interactive Brokers Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interactive Brokers and Virtu Financial, 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 Virtu Financial, are associated (or correlated) with Interactive Brokers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interactive Brokers has no effect on the direction of Virtu Financial, i.e., Virtu Financial, and Interactive Brokers go up and down completely randomly.
Pair Corralation between Virtu Financial, and Interactive Brokers
Given the investment horizon of 90 days Virtu Financial, is expected to under-perform the Interactive Brokers. But the stock apears to be less risky and, when comparing its historical volatility, Virtu Financial, is 1.48 times less risky than Interactive Brokers. The stock trades about -0.28 of its potential returns per unit of risk. The Interactive Brokers Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 6,192 in Interactive Brokers Group on July 20, 2025 and sell it today you would earn a total of 431.00 from holding Interactive Brokers Group or generate 6.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtu Financial, vs. Interactive Brokers Group
Performance |
| Timeline |
| Virtu Financial, |
| Interactive Brokers |
Virtu Financial, and Interactive Brokers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtu Financial, and Interactive Brokers
The main advantage of trading using opposite Virtu Financial, and Interactive Brokers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtu Financial, position performs unexpectedly, Interactive Brokers 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 Interactive Brokers will offset losses from the drop in Interactive Brokers' long position.| Virtu Financial, vs. Raymond James Financial | Virtu Financial, vs. Stonex Group | Virtu Financial, vs. Moelis Co | Virtu Financial, vs. Lazard |
| Interactive Brokers vs. Brookfield Corp | Interactive Brokers vs. Robinhood Markets | Interactive Brokers vs. Chubb | Interactive Brokers vs. ICICI Bank Limited |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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