Correlation Between Ab Select and Great-west Lifetime
Can any of the company-specific risk be diversified away by investing in both Ab Select and Great-west Lifetime 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 Ab Select and Great-west Lifetime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Select Longshort and Great West Lifetime 2050, you can compare the effects of market volatilities on Ab Select and Great-west Lifetime 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 Ab Select with a short position of Great-west Lifetime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Select and Great-west Lifetime.
Diversification Opportunities for Ab Select and Great-west Lifetime
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ASCLX and GREAT-WEST is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Ab Select Longshort and Great West Lifetime 2050 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great West Lifetime and Ab Select 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 Ab Select Longshort are associated (or correlated) with Great-west Lifetime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great West Lifetime has no effect on the direction of Ab Select i.e., Ab Select and Great-west Lifetime go up and down completely randomly.
Pair Corralation between Ab Select and Great-west Lifetime
Assuming the 90 days horizon Ab Select Longshort is expected to generate 0.94 times more return on investment than Great-west Lifetime. However, Ab Select Longshort is 1.06 times less risky than Great-west Lifetime. It trades about 0.37 of its potential returns per unit of risk. Great West Lifetime 2050 is currently generating about 0.24 per unit of risk. If you would invest 1,352 in Ab Select Longshort on September 3, 2024 and sell it today you would earn a total of 56.00 from holding Ab Select Longshort or generate 4.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Select Longshort vs. Great West Lifetime 2050
Performance |
| Timeline |
| Ab Select Longshort |
| Great West Lifetime |
Ab Select and Great-west Lifetime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Select and Great-west Lifetime
The main advantage of trading using opposite Ab Select and Great-west Lifetime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Select position performs unexpectedly, Great-west Lifetime 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 Great-west Lifetime will offset losses from the drop in Great-west Lifetime's long position.| Ab Select vs. Vanguard Financials Index | Ab Select vs. Davis Financial Fund | Ab Select vs. Icon Financial Fund | Ab Select vs. Blackrock Financial Institutions |
| Great-west Lifetime vs. Ab Select Longshort | Great-west Lifetime vs. Barings Active Short | Great-west Lifetime vs. Sterling Capital Short | Great-west Lifetime vs. Maryland Short Term Tax Free |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |