Correlation Between Astron Connect and Great West
Can any of the company-specific risk be diversified away by investing in both Astron Connect and Great West 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 Astron Connect and Great West into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astron Connect and Great West Lifeco, you can compare the effects of market volatilities on Astron Connect and Great West 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 Astron Connect with a short position of Great West. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astron Connect and Great West.
Diversification Opportunities for Astron Connect and Great West
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Astron and Great is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Astron Connect and Great West Lifeco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great West Lifeco and Astron Connect 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 Astron Connect are associated (or correlated) with Great West. 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 Lifeco has no effect on the direction of Astron Connect i.e., Astron Connect and Great West go up and down completely randomly.
Pair Corralation between Astron Connect and Great West
Assuming the 90 days horizon Astron Connect is expected to generate 6.15 times more return on investment than Great West. However, Astron Connect is 6.15 times more volatile than Great West Lifeco. It trades about 0.23 of its potential returns per unit of risk. Great West Lifeco is currently generating about -0.2 per unit of risk. If you would invest 2.50 in Astron Connect on October 18, 2024 and sell it today you would earn a total of 0.50 from holding Astron Connect or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astron Connect vs. Great West Lifeco
Performance |
| Timeline |
| Astron Connect |
| Great West Lifeco |
Astron Connect and Great West Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astron Connect and Great West
The main advantage of trading using opposite Astron Connect and Great West positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astron Connect position performs unexpectedly, Great West 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 will offset losses from the drop in Great West's long position.| Astron Connect vs. Costco Wholesale Corp | Astron Connect vs. Verizon Communications CDR | Astron Connect vs. Bank of Nova | Astron Connect vs. Maple Leaf Foods |
| Great West vs. Sun Life Financial | Great West vs. Power | Great West vs. Manulife Financial Corp | Great West vs. National Bank of |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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