Correlation Between Virtus Allianzgi and NYSE Composite

Can any of the company-specific risk be diversified away by investing in both Virtus Allianzgi and NYSE Composite 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 Allianzgi and NYSE Composite into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Virtus Allianzgi Health and NYSE Composite, you can compare the effects of market volatilities on Virtus Allianzgi and NYSE Composite 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 Allianzgi with a short position of NYSE Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Allianzgi and NYSE Composite.

Diversification Opportunities for Virtus Allianzgi and NYSE Composite

0.18

Correlation Coefficient

Virtus Allianzgi  NYSE Composite

Average diversification

The 3 months correlation between Virtus and NYSE is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Allianzgi Health and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Virtus Allianzgi 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 Allianzgi Health are associated (or correlated) with NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of Virtus Allianzgi i.e., Virtus Allianzgi and NYSE Composite go up and down completely randomly.

Pair Corralation between Virtus Allianzgi and NYSE Composite

Assuming the 90 days horizon Virtus Allianzgi Health is expected to generate 0.75 times more return on investment than NYSE Composite. However, Virtus Allianzgi Health is 1.34 times less risky than NYSE Composite. It trades about 0.23 of its potential returns per unit of risk. NYSE Composite is currently generating about -0.01 per unit of risk. If you would invest  3,078  in Virtus Allianzgi Health on March 6, 2024 and sell it today you would earn a total of  46.00  from holding Virtus Allianzgi Health or generate 1.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	66.67%
Values	Daily Returns

Virtus Allianzgi Health  vs.  NYSE Composite