Correlation Between Virtus High and Multimanager Lifestyle
Can any of the company-specific risk be diversified away by investing in both Virtus High and Multimanager Lifestyle 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 High and Multimanager Lifestyle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus High Yield and Multimanager Lifestyle Growth, you can compare the effects of market volatilities on Virtus High and Multimanager Lifestyle 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 High with a short position of Multimanager Lifestyle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus High and Multimanager Lifestyle.
Diversification Opportunities for Virtus High and Multimanager Lifestyle
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Virtus and Multimanager is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Virtus High Yield and Multimanager Lifestyle Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multimanager Lifestyle and Virtus High 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 High Yield are associated (or correlated) with Multimanager Lifestyle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multimanager Lifestyle has no effect on the direction of Virtus High i.e., Virtus High and Multimanager Lifestyle go up and down completely randomly.
Pair Corralation between Virtus High and Multimanager Lifestyle
Assuming the 90 days horizon Virtus High is expected to generate 1.95 times less return on investment than Multimanager Lifestyle. But when comparing it to its historical volatility, Virtus High Yield is 2.43 times less risky than Multimanager Lifestyle. It trades about 0.24 of its potential returns per unit of risk. Multimanager Lifestyle Growth is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,444 in Multimanager Lifestyle Growth on June 2, 2025 and sell it today you would earn a total of 90.00 from holding Multimanager Lifestyle Growth or generate 6.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtus High Yield vs. Multimanager Lifestyle Growth
Performance |
| Timeline |
| Virtus High Yield |
| Multimanager Lifestyle |
Virtus High and Multimanager Lifestyle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus High and Multimanager Lifestyle
The main advantage of trading using opposite Virtus High and Multimanager Lifestyle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus High position performs unexpectedly, Multimanager Lifestyle 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 Multimanager Lifestyle will offset losses from the drop in Multimanager Lifestyle's long position.| Virtus High vs. Vanguard Multi Sector Income | Virtus High vs. Virtus Multi Sector Short | Virtus High vs. Ridgeworth Seix High | Virtus High vs. Ridgeworth Innovative Growth |
| Multimanager Lifestyle vs. Redwood Real Estate | Multimanager Lifestyle vs. Nomura Real Estate | Multimanager Lifestyle vs. Cohen Steers Real | Multimanager Lifestyle vs. Fidelity Real Estate |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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