Correlation Between Small Pany and Virtus Global

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

By analyzing existing cross correlation between Small Pany Fund and Virtus Global Infrastructure, you can compare the effects of market volatilities on Small Pany and Virtus Global 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 Small Pany with a short position of Virtus Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Small Pany and Virtus Global.

Diversification Opportunities for Small Pany and Virtus Global

0.23

Correlation Coefficient

Small Pany  Virtus Global

Modest diversification

The 3 months correlation between Small and Virtus is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Small Pany Fund and Virtus Global Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus Global Infras and Small Pany 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 Small Pany Fund are associated (or correlated) with Virtus Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus Global Infras has no effect on the direction of Small Pany i.e., Small Pany and Virtus Global go up and down completely randomly.

Pair Corralation between Small Pany and Virtus Global

Assuming the 90 days horizon Small Pany Fund is expected to generate 2.33 times more return on investment than Virtus Global. However, Small Pany is 2.33 times more volatile than Virtus Global Infrastructure. It trades about -0.01 of its potential returns per unit of risk. Virtus Global Infrastructure is currently generating about -0.12 per unit of risk. If you would invest  1,773  in Small Pany Fund on August 4, 2025 and sell it today you would lose (7.00) from holding Small Pany Fund or give up 0.39% of portfolio value over 90 days.

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

Small Pany Fund  vs.  Virtus Global Infrastructure

Small Pany Fund

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Small Pany Fund are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Small Pany may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Virtus Global Infras

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Virtus Global Infrastructure are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Virtus Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Small Pany and Virtus Global

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

The idea behind Small Pany Fund and Virtus Global Infrastructure 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.

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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.