This module allows you to analyze existing cross correlation between Virtus LifeSci Biotech Products ETF and Health Care Select Sector SPDR ETF. You can compare the effects of market volatilities on Virtus LifeSci and Health Care 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 Health Care. See also your portfolio center
. Please also check ongoing floating volatility patterns of Virtus LifeSci
and Health Care
Virtus LifeSci Biotech Product vs Health Care Select Sector SPDR
Considering 30-days investment horizon, Virtus LifeSci Biotech Products ETF is expected to generate 1.28 times more return on investment than Health Care. However, Virtus LifeSci is 1.28 times more volatile than Health Care Select Sector SPDR ETF. It trades about 0.09 of its potential returns per unit of risk. Health Care Select Sector SPDR ETF is currently generating about 0.0 per unit of risk. If you would invest 4,223 in Virtus LifeSci Biotech Products ETF on February 16, 2018 and sell it today you would earn a total of 89.25 from holding Virtus LifeSci Biotech Products ETF or generate 2.11% return on investment over 30 days.
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Overlapping area represents the amount of risk that can be diversified away by holding Virtus LifeSci Biotech Product and Health Care Select Sector SPDR in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Health Care Select 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 Products ETF are associated (or correlated) with Health Care. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Health Care Select has no effect on the direction of Virtus LifeSci i.e. Virtus LifeSci and Health Care go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in Virtus LifeSci Biotech Products ETF are ranked lower than 6 (%) of all global equities and portfolios over the last 30 days.
Over the last 30 days Health Care Select Sector SPDR ETF has generated negative risk-adjusted returns adding no value to investors with long positions.