Correlation Analysis Between Virtus LifeSci and Health Care

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.
 Time Horizon     30 Days    Login   to change
Symbolsvs

Virtus LifeSci Biotech Product  vs.  Health Care Select Sector SPDR

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Virtus LifeSci Biotech Products ETF is expected to generate 1.75 times more return on investment than Health Care. However, Virtus LifeSci is 1.75 times more volatile than Health Care Select Sector SPDR ETF. It trades about 0.35 of its potential returns per unit of risk. Health Care Select Sector SPDR ETF is currently generating about 0.14 per unit of risk. If you would invest  4,232  in Virtus LifeSci Biotech Products ETF on May 21, 2018 and sell it today you would earn a total of  384.58  from holding Virtus LifeSci Biotech Products ETF or generate 9.09% return on investment over 30 days.

Pair Corralation between Virtus LifeSci and Health Care

0.72
Time Period1 Month [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Poor diversification

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.

Comparative Volatility

 Predicted Return Density 
      Returns 
Virtus LifeSci Biotech  
23 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Virtus LifeSci Biotech Products ETF are ranked lower than 23 (%) of all global equities and portfolios over the last 30 days.
Health Care Select  
9 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Health Care Select Sector SPDR ETF are ranked lower than 9 (%) of all global equities and portfolios over the last 30 days.

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