Correlation Between Global Gold and Virtus Real
Can any of the company-specific risk be diversified away by investing in both Global Gold and Virtus Real 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 Global Gold and Virtus Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Gold Fund and Virtus Real Estate, you can compare the effects of market volatilities on Global Gold and Virtus Real 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 Global Gold with a short position of Virtus Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Gold and Virtus Real.
Diversification Opportunities for Global Gold and Virtus Real
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GLOBAL and VIRTUS is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Global Gold Fund and Virtus Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus Real Estate and Global Gold 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 Global Gold Fund are associated (or correlated) with Virtus Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus Real Estate has no effect on the direction of Global Gold i.e., Global Gold and Virtus Real go up and down completely randomly.
Pair Corralation between Global Gold and Virtus Real
Assuming the 90 days horizon Global Gold Fund is expected to generate 2.34 times more return on investment than Virtus Real. However, Global Gold is 2.34 times more volatile than Virtus Real Estate. It trades about 0.32 of its potential returns per unit of risk. Virtus Real Estate is currently generating about 0.02 per unit of risk. If you would invest 1,886 in Global Gold Fund on July 12, 2025 and sell it today you would earn a total of 805.00 from holding Global Gold Fund or generate 42.68% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.44% |
Values | Daily Returns |
Global Gold Fund vs. Virtus Real Estate
Performance |
Timeline |
Global Gold Fund |
Virtus Real Estate |
Global Gold and Virtus Real Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Global Gold and Virtus Real
The main advantage of trading using opposite Global Gold and Virtus Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Gold position performs unexpectedly, Virtus Real 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 Real will offset losses from the drop in Virtus Real's long position.Global Gold vs. Gabelli Gold Fund | Global Gold vs. World Precious Minerals | Global Gold vs. Gold And Precious | Global Gold vs. International Investors Gold |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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