Correlation Between Virtus Senior and Thrivent Partner

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

By analyzing existing cross correlation between Virtus Senior Floating and Thrivent Partner Worldwide, you can compare the effects of market volatilities on Virtus Senior and Thrivent Partner 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 Senior with a short position of Thrivent Partner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Senior and Thrivent Partner.

Diversification Opportunities for Virtus Senior and Thrivent Partner

0.71

Correlation Coefficient

Virtus Senior  Thrivent Partner

Poor diversification

The 3 months correlation between Virtus and Thrivent is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Senior Floating and Thrivent Partner Worldwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent Partner Wor and Virtus Senior 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 Senior Floating are associated (or correlated) with Thrivent Partner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrivent Partner Wor has no effect on the direction of Virtus Senior i.e., Virtus Senior and Thrivent Partner go up and down completely randomly.

Pair Corralation between Virtus Senior and Thrivent Partner

Assuming the 90 days horizon Virtus Senior Floating is expected to generate 0.18 times more return on investment than Thrivent Partner. However, Virtus Senior Floating is 5.6 times less risky than Thrivent Partner. It trades about 0.12 of its potential returns per unit of risk. Thrivent Partner Worldwide is currently generating about -0.13 per unit of risk. If you would invest  872.00  in Virtus Senior Floating on January 24, 2024 and sell it today you would earn a total of  3.00  from holding Virtus Senior Floating or generate 0.34% return on investment over 90 days.

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

Virtus Senior Floating  vs.  Thrivent Partner Worldwide

Virtus Senior Floating

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Virtus Senior Floating are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Virtus Senior is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Thrivent Partner Wor

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Thrivent Partner Worldwide are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Thrivent Partner 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 Senior and Thrivent Partner

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

The idea behind Virtus Senior Floating and Thrivent Partner Worldwide 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.