Correlation Between Virtus Emerging and Huber Capital

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

By analyzing existing cross correlation between Virtus Emerging Markets and Huber Capital Equity, you can compare the effects of market volatilities on Virtus Emerging and Huber Capital 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 Emerging with a short position of Huber Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Emerging and Huber Capital.

Diversification Opportunities for Virtus Emerging and Huber Capital

-0.64

Correlation Coefficient

Virtus Emerging  Huber Capital

Excellent diversification

The 3 months correlation between Virtus and Huber is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Emerging Markets and Huber Capital Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huber Capital Equity and Virtus Emerging 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 Emerging Markets are associated (or correlated) with Huber Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huber Capital Equity has no effect on the direction of Virtus Emerging i.e., Virtus Emerging and Huber Capital go up and down completely randomly.

Pair Corralation between Virtus Emerging and Huber Capital

Assuming the 90 days horizon Virtus Emerging Markets is expected to under-perform the Huber Capital. But the mutual fund apears to be less risky and, when comparing its historical volatility, Virtus Emerging Markets is 1.52 times less risky than Huber Capital. The mutual fund trades about -0.04 of its potential returns per unit of risk. The Huber Capital Equity is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  3,230  in Huber Capital Equity on September 15, 2024 and sell it today you would earn a total of  168.00  from holding Huber Capital Equity or generate 5.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Virtus Emerging Markets  vs.  Huber Capital Equity

Virtus Emerging Markets

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Virtus Emerging Markets has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Virtus Emerging is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Huber Capital Equity

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Huber Capital Equity are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Huber Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Virtus Emerging and Huber Capital

The main advantage of trading using opposite Virtus Emerging and Huber Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Emerging position performs unexpectedly, Huber Capital 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 Huber Capital will offset losses from the drop in Huber Capital's long position.

The idea behind Virtus Emerging Markets and Huber Capital Equity pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.