Correlation Between Virtus LifeSci and Bank Negara
Can any of the company-specific risk be diversified away by investing in both Virtus LifeSci and Bank Negara 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 LifeSci and Bank Negara into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus LifeSci Biotech and Bank Negara Indonesia, you can compare the effects of market volatilities on Virtus LifeSci and Bank Negara 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 LifeSci with a short position of Bank Negara. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus LifeSci and Bank Negara.
Diversification Opportunities for Virtus LifeSci and Bank Negara
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Virtus and Bank is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Virtus LifeSci Biotech and Bank Negara Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Negara Indonesia and Virtus LifeSci 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 LifeSci Biotech are associated (or correlated) with Bank Negara. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Negara Indonesia has no effect on the direction of Virtus LifeSci i.e., Virtus LifeSci and Bank Negara go up and down completely randomly.
Pair Corralation between Virtus LifeSci and Bank Negara
Considering the 90-day investment horizon Virtus LifeSci is expected to generate 2.36 times less return on investment than Bank Negara. But when comparing it to its historical volatility, Virtus LifeSci Biotech is 2.62 times less risky than Bank Negara. It trades about 0.04 of its potential returns per unit of risk. Bank Negara Indonesia is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,475 in Bank Negara Indonesia on December 29, 2023 and sell it today you would earn a total of 332.00 from holding Bank Negara Indonesia or generate 22.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Virtus LifeSci Biotech vs. Bank Negara Indonesia
Performance |
Timeline |
Virtus LifeSci Biotech |
Bank Negara Indonesia |
Virtus LifeSci and Bank Negara Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Virtus LifeSci and Bank Negara
The main advantage of trading using opposite Virtus LifeSci and Bank Negara positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus LifeSci position performs unexpectedly, Bank Negara 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 Bank Negara will offset losses from the drop in Bank Negara's long position.Virtus LifeSci vs. First Trust Exchange Traded | Virtus LifeSci vs. Horizon Kinetics Medical | Virtus LifeSci vs. Harbor Health Care | Virtus LifeSci vs. First Trust Indxx |
Bank Negara vs. Fifth Third Bancorp | Bank Negara vs. HDFC Bank Limited | Bank Negara vs. Banco Bradesco SA | Bank Negara vs. Banco Do Brasil |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Stocks Directory Find actively traded stocks across global markets |