Correlation Between Great West and Evertz Technologies
Can any of the company-specific risk be diversified away by investing in both Great West and Evertz Technologies 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 Great West and Evertz Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Great West Lifeco and Evertz Technologies Limited, you can compare the effects of market volatilities on Great West and Evertz Technologies 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 Great West with a short position of Evertz Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great West and Evertz Technologies.
Diversification Opportunities for Great West and Evertz Technologies
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Great and Evertz is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Great West Lifeco and Evertz Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evertz Technologies and Great West 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 Great West Lifeco are associated (or correlated) with Evertz Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evertz Technologies has no effect on the direction of Great West i.e., Great West and Evertz Technologies go up and down completely randomly.
Pair Corralation between Great West and Evertz Technologies
Assuming the 90 days trading horizon Great West is expected to generate 3.49 times less return on investment than Evertz Technologies. But when comparing it to its historical volatility, Great West Lifeco is 1.36 times less risky than Evertz Technologies. It trades about 0.07 of its potential returns per unit of risk. Evertz Technologies Limited is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,204 in Evertz Technologies Limited on September 14, 2024 and sell it today you would earn a total of 43.00 from holding Evertz Technologies Limited or generate 3.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great West Lifeco vs. Evertz Technologies Limited
Performance |
| Timeline |
| Great West Lifeco |
| Evertz Technologies |
Great West and Evertz Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great West and Evertz Technologies
The main advantage of trading using opposite Great West and Evertz Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great West position performs unexpectedly, Evertz Technologies 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 Evertz Technologies will offset losses from the drop in Evertz Technologies' long position.| Great West vs. Highwood Asset Management | Great West vs. Western Investment | Great West vs. Guru Organic Energy | Great West vs. Goodfood Market Corp |
| Evertz Technologies vs. JPMorgan Chase Co | Evertz Technologies vs. Bank of America | Evertz Technologies vs. Toronto Dominion Bank | Evertz Technologies vs. Royal 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |