Correlation Between Lkcm Small-mid and Great-west Loomis
Can any of the company-specific risk be diversified away by investing in both Lkcm Small-mid and Great-west Loomis 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 Lkcm Small-mid and Great-west Loomis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lkcm Small Mid Cap and Great West Loomis Sayles, you can compare the effects of market volatilities on Lkcm Small-mid and Great-west Loomis 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 Lkcm Small-mid with a short position of Great-west Loomis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lkcm Small-mid and Great-west Loomis.
Diversification Opportunities for Lkcm Small-mid and Great-west Loomis
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lkcm and Great-west is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Lkcm Small Mid Cap and Great West Loomis Sayles in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great West Loomis and Lkcm Small-mid 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 Lkcm Small Mid Cap are associated (or correlated) with Great-west Loomis. 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 Loomis has no effect on the direction of Lkcm Small-mid i.e., Lkcm Small-mid and Great-west Loomis go up and down completely randomly.
Pair Corralation between Lkcm Small-mid and Great-west Loomis
Assuming the 90 days horizon Lkcm Small Mid Cap is expected to generate 0.82 times more return on investment than Great-west Loomis. However, Lkcm Small Mid Cap is 1.22 times less risky than Great-west Loomis. It trades about 0.16 of its potential returns per unit of risk. Great West Loomis Sayles is currently generating about 0.08 per unit of risk. If you would invest 998.00 in Lkcm Small Mid Cap on September 1, 2024 and sell it today you would earn a total of 233.00 from holding Lkcm Small Mid Cap or generate 23.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
Lkcm Small Mid Cap vs. Great West Loomis Sayles
Performance |
| Timeline |
| Lkcm Small Mid |
| Great West Loomis |
Lkcm Small-mid and Great-west Loomis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lkcm Small-mid and Great-west Loomis
The main advantage of trading using opposite Lkcm Small-mid and Great-west Loomis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lkcm Small-mid position performs unexpectedly, Great-west Loomis 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 Loomis will offset losses from the drop in Great-west Loomis' long position.| Lkcm Small-mid vs. California Bond Fund | Lkcm Small-mid vs. Ms Global Fixed | Lkcm Small-mid vs. Inflation Protected Bond Fund | Lkcm Small-mid vs. Ultra Short Fixed Income |
| Great-west Loomis vs. Gabelli Gold Fund | Great-west Loomis vs. Global Gold Fund | Great-west Loomis vs. Invesco Gold Special | Great-west Loomis vs. International Investors Gold |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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