Correlation Between Virtus InfraCap and TrueShares Structured

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Virtus InfraCap and TrueShares Structured 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 InfraCap and TrueShares Structured into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus InfraCap US and TrueShares Structured Outcome, you can compare the effects of market volatilities on Virtus InfraCap and TrueShares Structured 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 InfraCap with a short position of TrueShares Structured. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus InfraCap and TrueShares Structured.

Diversification Opportunities for Virtus InfraCap and TrueShares Structured

0.91
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Virtus and TrueShares is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Virtus InfraCap US and TrueShares Structured Outcome in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TrueShares Structured and Virtus InfraCap 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 InfraCap US are associated (or correlated) with TrueShares Structured. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TrueShares Structured has no effect on the direction of Virtus InfraCap i.e., Virtus InfraCap and TrueShares Structured go up and down completely randomly.

Pair Corralation between Virtus InfraCap and TrueShares Structured

Given the investment horizon of 90 days Virtus InfraCap is expected to generate 1.45 times less return on investment than TrueShares Structured. In addition to that, Virtus InfraCap is 1.27 times more volatile than TrueShares Structured Outcome. It trades about 0.02 of its total potential returns per unit of risk. TrueShares Structured Outcome is currently generating about 0.04 per unit of volatility. If you would invest  2,451  in TrueShares Structured Outcome on December 29, 2023 and sell it today you would earn a total of  376.00  from holding TrueShares Structured Outcome or generate 15.34% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Virtus InfraCap US  vs.  TrueShares Structured Outcome

 Performance 
       Timeline  
Virtus InfraCap US 

Risk-Adjusted Performance

11 of 100

 
Low
 
High
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Virtus InfraCap US are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong technical and fundamental indicators, Virtus InfraCap is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.
TrueShares Structured 

Risk-Adjusted Performance

17 of 100

 
Low
 
High
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in TrueShares Structured Outcome are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, TrueShares Structured may actually be approaching a critical reversion point that can send shares even higher in April 2024.

Virtus InfraCap and TrueShares Structured Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Virtus InfraCap and TrueShares Structured

The main advantage of trading using opposite Virtus InfraCap and TrueShares Structured positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus InfraCap position performs unexpectedly, TrueShares Structured 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 TrueShares Structured will offset losses from the drop in TrueShares Structured's long position.
The idea behind Virtus InfraCap US and TrueShares Structured Outcome 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.

Other Complementary Tools

Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Content Syndication
Quickly integrate customizable finance content to your own investment portal
AI Investment Finder
Use AI to screen and filter profitable investment opportunities
FinTech Suite
Use AI to screen and filter profitable investment opportunities
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets